Takaichi Press Conference: Nuclear Policy and Consumption Tax

The press conference addressed calls from within the ruling parties and the bureaucracy for debate over the Three Non-Nuclear Principles, as well as concerns expressed by atomic bombing survivors and affected communities that Japan, the only country to have suffered wartime atomic bombings, could send the wrong message. Prime Minister Takaichi reiterated her determination that the tragedies of Hiroshima and Nagasaki must never be repeated.

Regarding nuclear disarmament, it was explained that the international situation had become increasingly severe because the NPT Review Conference had failed to adopt an outcome document. At the same time, the conference was described as an opportunity to reaffirm the importance of the NPT and the commitments of its states parties.

Consumption tax policy discussions focused on lowering the rate for food and beverages and introducing a tax credit with benefits, while questions were raised about understanding inside and outside the party, passage of the relevant legislation, and public understanding when the rate is restored.

Prime Minister Takaichi positioned Japan's leadership of international efforts toward a world without nuclear weapons as its mission as the only country to have suffered wartime atomic bombings.

The tax credit with benefits was described as intended to increase take-home income compared with the past according to income, by reducing the burden on middle- and low-income working people, and to provide support exceeding the effect of lowering the consumption tax rate on food and beverages.

The government announced a policy of providing necessary support so that low-income people willing to work but excluded from the system, as well as elderly people who are not employed, are not left behind by either benefits or existing social security systems.

Regarding a review of the Three Non-Nuclear Principles, she said that revisions to three security documents were being considered toward the end of the year and that, while avoiding prejudging the specific wording, there would be no change in upholding the principles as a policy position.

Regarding signing and ratifying the Treaty on the Prohibition of Nuclear Weapons and participating as an observer, the government said it would assess international developments and regional conditions around Japan, including the review conference scheduled for November this year, and consider a response genuinely effective for ensuring national security and producing tangible progress in nuclear disarmament. The government places importance on the NPT regime, in which both nuclear-weapon states and non-nuclear-weapon states participate.

It was explained that Japan has worked with both nuclear-weapon states and non-nuclear-weapon states through resolutions on the elimination of nuclear weapons and other measures, and has urged nuclear-weapon states to advance nuclear disarmament under Article VI of the NPT.

The basic policy for the tax credit with benefits was approved by the Cabinet on August 5, after going through the ruling parties' process, including the Tax Commission, an open meeting of the Social Security System Research Commission, the Policy Affairs Council, and the General Council. It was also stated that there had been discussion and support within the Japan Innovation Party. Going forward, the government intends to explain the policy, including during Diet deliberations, with a view to the early passage of the relevant legislation.

The consumption tax rate on food and beverages was described as being reduced from its original rate of 8% to 1% for two years only and then restored. When the rate is restored, the government will fully introduce finely targeted benefits linked to income and consider establishing the system through legislation. Prime Minister Takaichi stated that, regardless of whether she is prime minister or party leader when the rate is restored, she will respond responsibly to the end from the perspective of ensuring fiscal sustainability and market confidence.