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TOKYO: Japan’s Chief Cabinet Secretary Yoshihide Suga said on Saturday (Sept. 5) that the new prime minister should continue to protect businesses and jobs, mainly through payments and loans, to cushion the economic blow of the coronavirus pandemic.
Suga, one of the favorites to succeed Prime Minister Shinzo Abe in a leadership race later this month, reiterated his caution on the idea, put forward by some lawmakers, to cut the sales tax from the current 10 percent to mitigate the pain of households due to the pandemic.
“The sales tax is a source of income necessary to pay for the welfare of Japan … I think the rate should be kept as is,” Suga said on a television show.
The pandemic has deepened the recession in Japan, triggering the worst postwar economic downturn in the second quarter as collapsing global and domestic demand hit exports and corporate profits.
“The important thing now is to protect jobs and help companies to continue their business, mainly through payments and loans,” Suga said.
Suga is expected to win the leadership elections of the ruling Liberal Democratic Party (LDP) on September 14, which was established after Abe’s decision to resign last week. The winner is almost certain of becoming prime minister thanks to the PLD’s parliamentary majority.
Markets have been rife with speculation that Suga, by becoming prime minister, could call snap elections in the coming months to solidify his political grip.
“What people want most from the government is to deal with the pandemic and create a safe environment to live in,” Suga said, when asked if he would call early elections if he becomes Japan’s new leader.
