Takaichi's New Cabinet Faces Uphill Road to Fulfilling Pledges

Tokyo, Sept. 18 (Jiji Press)--Japanese Prime Minister Sanae Takaichi's new cabinet will go all out to steadily implement a consumption tax cut and other policies pledged for the February general election, as well as measures stipulated in the coalition agreement reached between her ruling Liberal Democratic Party and its partner, the Japan Innovation Party.

The proposed consumption tax cut on food products and a reduction in the number of seats in the House of Representatives, the lower chamber of the Diet, Japan's parliament, will be the first tests for the cabinet, which now includes a member from the JIP following Thursday's reshuffle.

Whether Takaichi can maintain her political clout and how she will address the Senate, previously called the House of Councillors, the upper chamber of the Diet, where the ruling bloc does not hold a majority, will be key to achieving the two goals, as consensus-building between the ruling and opposition camps is expected to be difficult.

Takaichi, who prioritizes the fight against rising prices among domestic issues, will rush to pass legislation calling for the consumption tax on food items to be lowered to 1 pct from the current 8 pct for two years from next April during an extraordinary Diet session to be convened soon.

Uncertainty, however, lingers over whether the ruling camp can secure cooperation from the opposition camp on its efforts to pass the legislation, especially as the Takaichi administration has yet to clarify how some 10 trillion yen needed for the tax reduction will be secured.

[Copyright The Jiji Press, Ltd.]