Japan LDP election platform draft does not mention financial tax

Japanese Prime Minister Fumio Kishida’s ruling Liberal Democratic Party (LDP) made no mention of reviewing financial income tax in its campaign platform for the Oct.31 general elections, a draft obtained by Reuters showed.

Kishida, who has vowed to rectify wealth disparities, had previously said reviewing financial income tax would be an option in addressing income gaps.

The absence of the financial income tax in its campaign platform may indicate a tug of war within the LDP between lawmakers backing efforts to correct wealth gaps and those embracing market-oriented capitalism.

Some investors have raised concerns that the new premier may press ahead with capital gain tax hikes signalling a turn-around from investor friendly economic policies pursued by Japan’s longest-serving premier Shinzo Abe from 2013 to 2020.

Kishida has said he wants to pursue policies that achieve a new style of capitalism aimed at distributing more wealth to households and addresses Japan’s widening income gap, while sticking to stimulus measures for now.