Japan's Suga signals focus on protecting jobs, rules out sales tax cut
06 September, 2020
Japan's Chief Cabinet Secretary Yoshihide Suga said on Saturday (Sep 5) the new prime minister must continue to protect companies and jobs, mainly through pay-outs and loans, to cushion the financial blow from the coronavirus pandemic.
Suga, a frontrunner to achieve success Prime Minister Shinzo Abe in a leadership race later this month, repeated his caution over the theory, floated by some lawmakers, to slice the sales tax from the existing 10 per cent to mitigate households' pain from the pandemic.
"The sales tax is a necessary source of revenue to cover Japan's social welfare ... I believe the rate ought to be kept since it is," Suga told a tv programme.
The pandemic has deepened recession in Japan, triggering the worst postwar economic slump in the next quarter as collapsing global and domestic demand hurt exports and corporate profits.
"What's important now could be to protect jobs and help companies continue with their businesses, mainly through pay-outs and loans," Suga said.
Suga is widely likely to win the ruling Liberal Democratic Party's (LDP) leadership election on Sep 14, that was set after Abe's decision the other day to step down. The winner is practically assured of becoming prime minister as a result of the LDP's parliamentary majority.
Markets have been rife with speculation that Suga, after becoming prime minister, may call a snap election in coming months to solidify his political grip.
"What people want most from the federal government is to manage the pandemic and create a safe environment to live," Suga said, when asked whether he'd call an early on snap election if he becomes Japan's new leader.
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