Japan’s Suga signals focus on protecting jobs, rules out sales tax cut By Reuters

Japan government to include $302 billion in spending under second



TOKYO (Reuters) – Japan’s Chief Cabinet Secretary Yoshihide Suga said on Saturday the new prime minister must continue to protect companies and jobs, mainly through pay-outs and loans, to cushion the economic blow from the coronavirus pandemic.

Suga, a frontrunner to succeed Prime Minister Shinzo Abe in a leadership race later this month, repeated his caution over the idea, floated by some lawmakers, to cut the sales tax from the current 10% to mitigate households’ pain from the pandemic.

“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 told a television programme.

The pandemic has deepened recession in Japan, triggering the worst postwar economic slump in the second quarter as collapsing global and domestic demand hurt exports and corporate profits.

“What’s important now is to protect jobs and help companies continue with their businesses, mainly through pay-outs and loans,” Suga said.

Suga is widely expected to win the ruling Liberal Democratic Party’s (LDP) leadership election on Sept. 14, which was set after Abe’s decision last week to step down. The winner is virtually assured of becoming prime minister because of the LDP’s parliamentary majority.

Markets have been rife with speculation that Suga, upon becoming prime minister, may call a snap election in coming months to solidify his political grip.

“What people want most from the government is to deal with the pandemic and create a safe environment to live,” Suga said, when asked whether he would call an early snap election if he becomes Japan’s new leader.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME