TOKYO (JAPAN) – Japan’s new prime minister who will succeed Shinzo Abe must continue protecting companies and jobs through pay outs and loans to minimise the effect of the blow to the economy by the pandemic, said Chief Cabinet Secretary Yoshihide Suga.
Suga, who is the frontrunner in the prime ministerial race, reiterated his caution over the idea proposed by some lawmakers to slash the sales tax from the present 10% to help families.
“The sales tax is a necessary source of revenue to pay for Japan’s social welfare … I think the rate should be kept as it is,” Suga said.
Recession has intensified in Japan because of the pandemic and it is witnessing the worst postwar dip in economy in Q-2 as demands for commodities globally battered exports.
“What’s important now is to protect jobs and help companies continue with their businesses, mainly through pay-outs and loans,” Suga said.
He is slated to win the ruling Liberal Democratic Party’s (LDP) poll on Sept. 14, to select the successor to Abe.
There is speculation that Suga might call a snap poll to cement his grip on the political landscape once he comes to power.
“What people want most from the government is to deal with the pandemic and create a safe environment to live,” Suga said.