Opposition parties to press Ishiba on consumption tax cut
Prime Minister Shigeru Ishiba remains opposed to a consumption tax cut, but opposition parties are expected to intensify calls for such measures after gaining more seats in Sunday's House of Councillors election.
Ishiba's Liberal Democratic Party and its junior coalition partner, Komeito, suffered a major setback in the upper house election, as the ruling bloc proposed cash handouts to address inflation as a key pillar of its campaign pledges.
Opposition forces have pledged to reduce or abolish the consumption tax, currently set at 10 percent for most goods and services and 8 percent for food and beverages.
With households continuing to struggle with rising prices for rice and daily necessities, how to tackle inflation emerged as the central issue in the upper house race.
The election results indicated voter support for opposition parties' proposals, with a Kyodo News exit poll showing that 72 percent of respondents favored a consumption tax cut, compared with 22 percent who preferred cash payouts.
Speaking on a television program after the polls closed, Ishiba reiterated that the consumption tax is a key source of revenue for medical and other social security programs, adding, "What will happen if the state's finances deteriorate further?"
"We struggled to show the public that we were proposing policies for the people, not for the sake of our political parties," he said.
However, the ruling coalition, which already lost its majority in the House of Representatives, or lower chamber, in the October election, may now have to pay greater attention to opposition demands to ensure the smooth passage of bills, potentially prompting debates over the consumption tax and government spending.
In the run-up to the election, financial markets reacted to projections of a ruling bloc setback, amid concerns that opposition gains could lead to looser fiscal policy and further worsen Japan's already poor fiscal health.
Long-term Japanese government bond yields are on the rise on concerns over potential increases in fiscal spending, with the benchmark 10-year yield rising to 1.595 percent on July 17, the highest level since 2008.
Japan's combined central and local government debt is projected to reach 1,330 trillion yen ($9 trillion) by the end of March next year, equivalent to 211 percent of the country's gross domestic product, according to the Finance Ministry.
The election outcome may also complicate the Bank of Japan's efforts to normalize its monetary policy after ending its unorthodox monetary easing framework, economists say.
The central bank may be forced to keep interest rates on hold if Ishiba is replaced by a successor who favors aggressive monetary easing, economists say.
© KYODO
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Nikkei Asia
7 minutes ago
- Nikkei Asia
US, Japan differ on details of tariff deal, with no clear start date
Ryosei Akazawa, center, Japan's lead negotiator in tariff talks with the U.S., returned to Japan on July 24 after a deal was announced. (Photo by Uichiro Kasai) JUN YAMAZAKI TOKYO -- Details released by the White House on its tariff agreement with Japan include many points that are unclear or out of sync with how Tokyo has explained it, including the date it goes into effect and the framework for Japanese investment in the U.S. A U.S. fact sheet on the Japan tariff deal released Wednesday states that "imports from Japan will be subject to a baseline 15% tariff rate" but does not clarify when that will start.
Nikkei Asia
4 hours ago
- Nikkei Asia
Thai-Cambodia clashes live: Malaysia's Anwar calls for 'immediate ceasefire'
BANGKOK -- Border tensions between Thailand and Cambodia have escalated significantly with their armies exchanging fire on Thursday, leaving 11 civilians dead in Thailand. Cambodian Prime Minister Hun Manet has appealed to the United Nations Security Council to hold an emergency meeting on the issue. Here are two recent Nikkei Asia opinion articles on the crisis: Cambodia seeks justice, not conflict, in border dispute with Thailand Hun Sen's gamble: Why Cambodia ex-ruler turned on Thai ally Thaksin Follow the latest developments in this live blog. (Thailand and Cambodia time) 9:31 p.m. Malaysian Prime Minister Anwar Ibrahim posted on social media that he spoke with Cambodian Prime Minister Hun Manet and Thailand's acting prime minister, Phumtham Wechayachai, this evening. "In our conversations, in Malaysia's capacity as ASEAN Chair for 2025, I appealed directly to both leaders for an immediate ceasefire to prevent further hostilities and to create space for peaceful dialogue and diplomatic resolution," Anwar said. "I welcome the positive signals and willingness shown by both Bangkok and Phnom Penh to consider this path forward." 7 p.m. Japanese Foreign Minister Takeshi Iwaya expressed "deep concern" over military clashes between Cambodia and Thailand. Following such a conflict in May, "Japan has been working to encourage both countries to de-escalate the situation," he said in a statement. "Japan urges both Cambodia and Thailand to exercise maximum restraint and strongly hopes that the tension between the two countries will be eased peacefully through dialogue," he said. 6:30 p.m. Thailand's benchmark SET stock index closed 0.58% lower on Thursday. 6:30 p.m. Cambodian government spokesman Pen Bona said in a news conference that Thursday's events will be added to the government's complaint to the International Court of Justice. "The clashes along the Cambodia-Thailand border will become an additional reason for Cambodia to file a complaint with the International Court of Justice," said Pen Bona. 6 p.m. Thailand's acting Prime Minister Phumtham Wechayachai spoke to reporters after National Security Council and Cabinet meetings. "We condemn this act of violence, which does not comply with international law that has to be strictly adhered to," he said. "We are not declaring war. ... We must try to talk to resolve the issue," he added, "but what happened was that Cambodia kept provoking us." Asked whether the two countries will talk at the government level, Phumtham said: "We must wait for this to stop first, as we weren't the ones to initiate it. If there's sincerity towards each other, then we can talk." 5:30 p.m. Lt. Gen. Maly Socheata, spokeswoman for the Cambodian Defense Ministry, said in a press conference that Thailand had attacked eight locations in the Cambodian provinces of Oddar Meanchey and Preah Vihear. She did not say whether there had been any casualties on the Cambodian side of the border. 4:30 p.m. Thailand's Minister of Public Health Somsak Thepsuthin said 11 civilians and one soldier had died due to the clashes and 24 injured across the country, based on information available as of 2:15 p.m. "The loss of lives today is unacceptable," he said. 4:20 p.m. Loeung Sophon, a representative for the Cambodian labor NGO Central based in Thailand, told Nikkei Asia that Cambodian migrant workers are even more destabilized by the exit of Cambodian embassy staff on Thursday morning. So far, he estimates that some 50,000 migrant workers have returned to Cambodia since June, ranging from those in construction to vendors and laborers on rubber farms. "Those who are still in Thailand really want to go back," he said. 4 p.m. The Philippines' Department of Foreign Affairs has issued a statement on the crisis: "We are hopeful our two fellow ASEAN member states will resolve this issue in accordance with international law and the peaceful settlement of disputes," it said. "We urge both parties to extend due consideration and care to innocent civilians who may be affected by the ongoing conflict." 3.50 p.m. Anthony Davis, a Bangkok-based security analyst with Janes - a defense intelligence group, told Nikkei Asia: "It's not very useful to compare total numbers [of both countries' militaries] -- it's not like they're going to be lining up one-on-one along the border to see who has got more guys. This is about equipment, so whether the Thais have 370,000 or 372,000 men under arms is largely irrelevant. "Assuming this escalates -- which is not a given -- this is about equipment more than numbers. "Both belligerents have enough numbers on the ground in the area to make life very uncomfortable for the other side. The question is what can they bring to the fight in terms of hardware, and we've already seen what the Thais can bring -- F-16 jets, which the Cambodians are in no position to counter." 3:40 p.m. Malaysian Prime Minister Anwar Ibrahim told reporters in Kuala Lumpur that the situation is "concerning." He said he expected to speak to the leaders from Thailand and Cambodia later today. "They are important members of ASEAN. They are very close to Malaysia," Anwar said. "The least you can expect is for them to just stand down and enter into negotiations." He went on to explain that he had the two countries' interests at heart and stressed that both wanted to have a "peaceful and amicable resolution" to the conflict. "Both want to keep ASEAN engaged. And we do precisely that," the prime minister said. "I still think peace is the only option available." 3:29 p.m. Thai Army said in a statement that it "continues to adhere to the principle of limited defensive operations, primarily targeting military objectives." The Thai Army said Cambodia's military action "clearly breaks the Geneva Conventions by using heavy weapons against civilian areas." 3:25 p.m. Paetongtarn Shinawatra, Thailand's suspended prime minister, told reporters: "Since the beginning, of course, we didn't want violence. But once it occurred, the military is well-prepared." Regarding the dispute over who struck first, "As usual, they would say we fired first, but we live in a world where there are many tools that can show [the truth] to the world ... Cambodia is only losing its credibility more and more." 3:20 p.m. Former Malaysian senior diplomat Ilango Karuppannan said the Thai-Cambodian conflict "reflects long-standing historical grievances," especially regarding the unresolved border demarcation around the Preah Vihear area. That this is happening under Malaysia's ASEAN chairmanship is "a real test of Malaysia's leadership and ASEAN's relevance." "If ASEAN is seen as unable to manage tensions between its own members, it could seriously undermine its credibility and raise doubts about its role in regional peace and stability," he said. Malaysia should consider convening an emergency meeting of ASEAN foreign ministers to urge restraint and encourage both sides to reactivate bilateral mechanisms like the Joint Border Commission, Karuppannan added. He advised Prime Minister Anwar Ibrahim personally to reach out to leaders of both countries to encourage de-escalation. "Alternatively, he may choose to appoint a trusted envoy to carry this out discreetly." 3 p.m. China says it is deeply concerned about the latest developments and hopes both sides will resolve the conflict through dialogue and consultation. "Thailand and Cambodia are both China's friendly neighbors and important members of ASEAN," Foreign Ministry spokesperson Guo Jiajun tells reporters, adding that China is willing to play a role in de-escalating the situation. 2:50 p.m. On its Facebook page the Royal Thai Army has invited Thais to post on social media, adding the hashtags #CambodiaShootsFirst #ThailandLovesPeaceButWhenItComesToWar,WeAreNotCowardly and #CambodiaOpenedFire 2:45 p.m. Some Cambodian residents in Oddar Meanchey province -- the Cambodian side of the disputed Ta Moan Thom temple area -- started evacuating, according to local news outlet Kiripost. In neighboring Banteay Meanchey province, the site of bordertown and casino hub Poipet city, some residents say they packed bags to be ready if they need to flee. 2:40 p.m. Cambodia's Defense Ministry laid out a different scenario from its Thai counterparts, claiming that Thai military activity started first. Ministry spokeswoman Lt. Gen. Maly Socheata said in a statement that Thailand started the latest clash by ascending a path to Ta Moan Thom Temple and placed barbed wire around the base at 6:30 a.m. She said Thai forces flew a drone for about two minutes at 7:04 a.m. "Then, at 8:30 AM, they opened fire, and by 8:46 AM, Thai invading forces had initiated an armed assault on Cambodian troops stationed at Ta Moan Thom Temple." Cambodian troops returned fire at 8:47 a.m., the statement says, describing the move as the country's right to defend itself. Fighting expanded later in the morning to the Ta Krabey Temple near Ta Moan Thom, the Phnom Khmao area in a separate area, and then a Thai F16 fighter jet dropped two bombs on a road leading to Wat Kaew Seekha Kiri Svarak Pagoda. The statement asks the international community to condemn the incident as an aggression by Thai forces, and asks residents not to share unverified information, images or videos. 2:30 p.m. Thai government spokesperson Jirayu Huangsap confirmed that the Thai Air Force's six F-16 fighter jets have successfully completed an operation to support the army on the ground and returned to base. The army's regional command posted on Facebook that the Air Force has attacked two brigade headquarters of Cambodia around 11 a.m. 2:30 p.m. Former Thai Prime Minister Thaksin Shinawatra posted on X: "Today, Hun Sen ordered the shooting into Thai territory early in the morning, firing first after laying bomb traps along the border, which is considered a violation of international law and the ethics of living together as good neighbors. "Thailand has exercised patience and restraint, fully adhering to international law and fulfilling its duties as a good neighbor," he added. "From now on, Thai soldiers can respond according to strategic plans, and the Ministry of Foreign Affairs can rightfully implement various measures." 2:15 p.m. The Royal Thai Army has just announced that nine Thai civilians have been killed as a result of the clashes. Six of the fatalities were in Sisaket province, two in Surin province and one in Ubon Ratchathani province. The deadliest incident was in Sisaket province when a gas station exploded, causing six deaths and 10 injuries. A further 14 civilians have been injured, the army says in a statement. 2:00 p.m. Cambodian Prime Minister Hun Manet says that he wrote a letter to the United Nation's Security Council president, seeking an urgent meeting over the clash "to stop Thailand's aggression." In the letter to Asim Iftikhar Ahmad, permanent representative of Pakistan and Security Council president for July, Hun Manet directs frustration toward Thailand, citing the clash this morning, as well as Thailand's attempts to characterize landmine explosions as new acts of aggressions by Cambodia. "This military escalation takes place in spite of regional and international appeals for restraint and peaceful solutions and Cambodia's demonstrated commitment to dialogue," he wrote, noting that Cambodia had sent the case to the International Court of Justice since June 6 and then hosted a bilateral dialogue in Phnom Penh on June 14 and 15. Meanwhile, Cambodia's Foreign Affairs Ministry condemns the attack, which it calls an "unprovoked premeditated and deliberate attacks on Cambodian positions along the border areas." The ministry characterized the clash as a "reckless and hostile act by Thailand," the ministry says. 1:50 p.m. Here's a brief background on why the Thai-Cambodia border is contested. The two neighbors have a long history of border disputes, which center on a disagreement over the Preah Vihear temple, to which Thailand lays claim, and the surrounding area. The issue routinely stirs up nationalistic sentiments in both countries. The controversy stems from a 1907 border treaty between France and Siam -- present-day Thailand -- that placed the Preah Vihear temple in Cambodian territory. The French used a watershed between the two countries to draw the border. However, Thailand contested French maps in the 1930s and occupied the temple complex in 1954. In 1962, the International Court of Justice (ICJ) ruled that the temple complex belonged to Cambodia but did not rule on other contested land. From 2008 to 2011, the two countries routinely engaged in cross-border firings near the Preah Vihear temple complex, resulting in large military deployments from both sides in 2011. The issue once again reached the ICJ, which reaffirmed its 1962 ruling in 2013. In addition, back in 2003, a popular Thai actress said in a Thai TV interview that she hated Cambodia for stealing her Angkor Wat, according to the Cambodia Daily newspaper. Some Cambodians were angered by this, and rioters set fire to the Thai Embassy in Phnom Penh. For more information, read our previous explainer, published last month. 1:45 p.m. Cambodian Prime Minister Hun Manet had a lengthy military career. He joined the Royal Cambodian Armed Forces (RCAF) in 1995 and four years later became the first Cambodian to graduate from the U.S. Military Academy at West Point. He rose steadily through the ranks, becoming a major general in 2011 and deputy commander in chief of the RCAF in 2019. His postings included leading the counterterrorism team and deputy chief of the prime minister's bodyguard unit. He was promoted to the highest rank, four-star general, in 2023, shortly before he replaced his father Hun Sen as prime minister. 1:15 p.m. Thailand's foreign ministry issues a statement, urging Cambodia to "cease its repeated acts which constitute a severe violation of international law." Thailand "is prepared to intensify our self-defense measures if Cambodia persists in its armed attack and violations upon Thailand's sovereignty in accordance with international law and principles," the ministry says. 12:30 p.m. Rear Admiral Surasant Kongsiri, spokesperson of Thailand's ad hoc center for the border situation, tells reporters in a press briefing that there have been three serious injuries, including a five-year-old boy, and one death has been reported in the Phanom Dong Rak border community in Surin province. The ad hoc center has elevated the security measures from Level 2 to Level 4, which involves the complete closure of all border checkpoints along the Thai Cambodian border, Surasant says. "The Cambodian side has deployed heavy weapons such as BM-21 multiple rocket launchers and 122 millimeter artillery, causing damage to Thai civilian homes and public facilities along the border," he says. 12:30 p.m. Cambodia's defense ministry said in a statement that it "strongly condemns the reckless and brutal military aggression" of Thailand, Reuters reports. 11:55 a.m. Tataya Sattapanon, deputy mayor of the border district of Tambon Ta Muen in Thailand, tells Nikkei on the phone that she is currently in a bunker near her home, together with her neighbors. "I cannot go to the prepared evacuation center because artillery fire from Cambodia is still coming," she says. She says she learned from social media that one hit near the Phnom Dongrak Hospital and another hit a 7-Eleven store. "We are still hearing sounds of artillery explosions." 11:30 a.m. Thailand's deputy defense minister, Gen. Nattapol Nakphanit, pledges that the Thai army will protect Thailand's sovereignty. "Thai people throughout the country, please be assured that the Thai army will protect our sovereignty and will not allow anyone to encroach on our territory," he says at Government House. "We will not endure anymore because this is the action of the Cambodian military that we cannot accept. We ask the people to give encouragement to the personnel who are on duty along the border, especially in the area of the 2nd Army."
Yomiuri Shimbun
4 hours ago
- Yomiuri Shimbun
Ishiba Weighs Timing of Resignation Amid Revolt in LDP; Prime Minister Seeks to Minimize Political Disruption
With Prime Minister Shigeru Ishiba having decided to resign, the focus has now shifted to when he will make it official. Ishiba plans to choose a moment that will minimize disruption to key political events — reaching a formal agreement in Japan-U.S. tariff negotiations, an upcoming extraordinary Diet session, and the leadership race for the Liberal Democratic Party, of which Ishiba is president. But with the 'Down with Ishiba' movement showing no signs of easing, the window for the prime minister to decide on his own is steadily shrinking. Fears of being a lame duck 'The tariff talks concern the national interest. I'm counting on [economic revitalization minister Ryosei] Akazawa,' Ishiba confided to those around him on Tuesday night, the eve of the tariff deal. 'Once the tariff negotiations show prospects [of reaching a deal], I'll explain how I will take responsibility, but I can't publicly say 'I'm quitting' yet.' In the final days of the upper house election campaign, it became clear that the ruling bloc was struggling. Ishiba was prepared to resign if the ruling LDP–Komeito coalition failed to maintain a majority. Although they fell short of their target of 50 seats, winning 47, he judged the setback to be survivable and decided — for the moment — to stay on. Even so, Ishiba never intended to cling to power. On election day Sunday, he told close aides, 'It would be alright to lay out a roadmap and hand the post to the next person.' But he also worried that announcing his departure during talks with Washington would brand him a lame duck, weakening Japan's bargaining position. Timing hinges on political calendar Ishiba's plan was to assess the outcome of the Japan-U.S. talks, his most pressing issue, and then finalize the timing of his announcement. But because he shared this plan with only a very small circle, there was a backlash within the LDP, with many perceiving Ishiba's actions as an attempt to hold onto power indefinitely. On Tuesday, lawmakers demanding his resignation launched a petition drive calling for the party leadership election to be brought forward, making the 'Down with Ishiba' drive explicit. Even local LDP chapters — Ishiba's power base — joined the calls for him to go. Fearing that wobbly footing would sap Japan's bargaining power with the United States, Ishiba asked three former prime ministers — Fumio Kishida, Yoshihide Suga, and Taro Aso — to meet on Wednesday and help calm the waters. He planned to tell them he would clarify his future once certain results have been achieved, believing the former leaders would understand. After the talks he denied he would resign immediately, but one Cabinet member remarked, 'He just can't say it yet; this wasn't a pledge to stay.' Reading The Yomiuri Shimbun on Wednesday morning, which reported 'Decision on resignation [to be made] soon after seeing the progress of the tariff talks,' Ishiba murmured, 'A deal has been reached with the U.S., but my thinking [on resignation] hasn't changed. I hope this quiets the party.' After receiving news of the Japan-U.S. agreement from Akazawa, Ishiba told reporters at the Prime Minister's Office, 'With the negotiation outcome in hand, the question now is what decision I should make,' hinting at his own future. Yet Ishiba believed he had to delay any announcement until a formal, signed document was exchanged by the two governments. If a summit with U.S. President Donald Trump could be arranged, he hoped to postpone it even further. Because the ruling bloc is now a minority in both chambers, an early resignation could prompt the opposition to demand a prime-ministerial vote during the extraordinary Diet session slated to start Aug 1. Marking the 80th anniversary of the end of World War II, Ishiba, who is considering a review of the war, also wishes to remain prime minister through Aug. 15. Party sentiment is far from sympathetic. On Wednesday, the LDP leadership moved up to July 28 a joint caucus to hear opinions from members regarding the upper house election results. A former minister who maintains distance from Ishiba warned, 'If he doesn't announce his resignation at the very start of that meeting, the 'Down with Ishiba' movement will finish him.'
