Takaichi aims to declare end to deflation in Japan

During a parliamentary session, Takaichi referred to the current state of the economy, saying, "We are currently experiencing inflation, but we cannot say that we have overcome deflation yet."

In response to a question from Reiwa Shinsengumi co-head Mari Kushibuchi, Takaichi did not rule out the possibility of revising in the future Japan's three non-nuclear principles of not possessing or making nuclear weapons or allowing them to be brought into the country.

Takaichi has called for reviewing the principle of not allowing nuclear weapons to be brought into Japan.

At the parliamentary session, Kushibuchi urged that it remain unchanged as a "national policy." Takaichi replied, "At this stage, the government is firmly maintaining it as a policy." Still, Kushibuchi said she was surprised that the prime minister did not clearly promise to uphold the principle of prohibiting nuclear weapons from entering Japan.

Meanwhile, Takaichi promised to consider a tax system proposed by Ken Tanaka of the opposition Democratic Party for the People, which would allow companies to depreciate more than the amount of their capital expenditures in a bid to encourage aggressive investment.

"For small and midsize companies, the tax burden is expected to fall, allowing the funds to be used for additional investment," the prime minister said.

She also expressed caution about establishing a uniform nationwide target for the country's minimum wage.

The administration of former Prime Minister Shigeru Ishiba, Takaichi's immediate predecessor, set a target of raising the national average to 1,500 yen in the 2020s. Takaichi, however, said, "The central government's task is to create an environment in which wages can be raised rather than unilaterally setting a target."

When asked about reopening a full investigation into the slush fund scandal involving the ruling Liberal Democratic Party, Takaichi stressed, "I never consider it settled." She expressed her intention to ensure that LDP members comply with laws and regulations and to prevent any recurrence.

 [Copyright The Jiji Press, Ltd.]