Key Economic and Tax Policy Pledges by Major Parties in the 2025 House of Councillors Election
Liberal Democratic Party (LDP)
- Implements robust economic measures to protect citizens from rising prices and the impact of U.S. tariffs.
- Bold investments in growth sectors, support for small and medium-sized enterprises, and revitalization of regional economies.
- Cash handouts: 40,000 yen per child and for those exempt from resident tax; 20,000 yen for others.
- Promotes wage increases: aims for a nominal 3% and real 1% wage rise, targeting a 1 million yen increase in average wages by 2030.
- Income tax reform, including raising the basic exemption and a comprehensive review of the tax system.
- Does not pledge tax cuts reliant on deficit bonds or reductions in future-oriented investments.
Constitutional Democratic Party of Japan (CDP)
- Pledges a temporary reduction of the reduced consumption tax rate on food and other essentials to 0% for one year (extendable up to two years).
- Aims to introduce a refundable tax credit system in the future.
- Focuses on easing the tax burden for low- and middle-income earners.
- Internal debates remain cautious about broader consumption tax cuts.
Komeito
- Proposes raising the minimum taxable income threshold from 1.03 million yen to 1.6 million yen.
- 99% of taxpayers would receive a tax reduction of 20,000–40,000 yen.
- Supports household finances through a combination of tax cuts and cash handouts.
- Implements “living support benefits” and “living support tax cuts”.
Japan Innovation Party (Ishin)
- Proposes eliminating the consumption tax on food until March 2027 as a temporary measure.
- Seeks to balance relief for middle-class households with long-term fiscal sustainability.
Democratic Party for the People (DPP)
- Calls for a permanent reduction of the consumption tax rate to 5%.
- Plans to raise the “1.03 million yen wall” to 1.78 million yen.
- Also advocates for abolishing the provisional gasoline tax.
Japanese Communist Party (JCP) & Social Democratic Party (SDP)
NHK Party (N Party)
- Seeks to reduce wasteful government spending and advocates for broad tax cuts, including the consumption tax.
- If difficult to achieve, is flexible about other tax reductions, such as the gasoline tax.
Comparison Table of Economic and Tax Policies
| Party | Consumption Tax Policy | Income Tax / Benefits | Other Economic Policies |
|---|---|---|---|
| LDP | Cautious on tax cuts | Raise basic exemption | Wage hikes, SME support, cash handouts |
| CDP | Temporary food tax cut | Refundable tax credit | Household support, focus on low/mid-income |
| Komeito | Tax cuts + benefits | Raise minimum taxable income | Living support tax cuts and benefits |
| Ishin | Temporary food tax exemption | – | Fiscal soundness + household relief |
| DPP | 5% permanent tax cut | 1.03m → 1.78m yen threshold | Abolish gasoline tax, wage increases |
| JCP/SDP | Lower/abolish consumption tax | – | Household support focus |
| N Party | Broad tax cuts | – | Cut wasteful spending |
Voting Message
Voting takes only a few minutes.
Participating in elections is an important step in engaging with politics.
Choose the party whose policies align with your views and make your voice heard!
Comments