The ruling Liberal Democratic Party (LDP) and the main opposition Constitutional Democratic Party of Japan (CDP) have agreed to set up a panel to discuss a refundable tax credit program aimed at helping low- and middle-income earners by combining a reduction of income and other taxes with cash benefits.
LDP Secretary-General Hiroshi Moriyama and his CDP counterpart, Jun Azumi, reached the agreement at a meeting Tuesday at parliament.
In a separate meeting later, Makoto Nishida, secretary-general of Komeito, the LDP's coalition partner, told Azumi that Komeito intends to join the panel.
The CDP called for introducing a refundable tax credit program in its policy promises for the July 20 election for the House of Councilors, the upper chamber of parliament, to counter inflation.
In a meeting of the Budget Committee at the House of Representatives, the lower chamber, in August, CDP leader Yoshihiko Noda called on Prime Minister Shigeru Ishiba, also LDP president, to set up a panel of ruling and opposition parties to discuss measures to address soaring prices, and Ishiba responded positively.
"We should launch the panel as soon as possible," Moriyama told reporters after Tuesday's meeting, hinting at the possibility of starting it under the administration of Ishiba, who recently announced his intention to resign. Azumi said he would ask each party to participate.
Moriyama and Azumi also confirmed that they will continue discussions in line with an agreement between the ruling and opposition parties to abolish the provisional gasoline tax rate as early as possible and by the end of the year.
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