Major shift in security policy, decision on when to start raising taxes next year said by Japanese Prime Minister Kishida

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1. Tokyo, 16 May (Reuters) – Prime Minister Fumio Kishida held a press conference on 16 May following the decision on a new National Security Strategy and other matters, including a policy of possessing counter-attack capabilities. He stated that the start date of the tax increase underpinning the increase in defence spending would be decided next year.

   Prime Minister Kishida explained that the reason for the decision to increase defence capabilities was that “a rapid build-up of arms and attempts to change the status quo by force are becoming more pronounced around our country”. He stated that the JSDF’s current capabilities are not sufficient, and that the JSDF will acquire a counterattack capability to attack enemy bases, strengthen its response in new areas such as space and cyber, and increase its defence capabilities in the southwest area.

   Prime Minister Kishida said that he would fulfil his mission as Prime Minister to protect the people at a turning point in history. At the same time, he said that Japan’s adherence to the three non-nuclear principles and the exclusive defence of the nation and Japan’s progress as a peaceful nation will remain unchanged, and that he will continue his efforts to explain the situation to the public and relevant countries and to gain their understanding.

   <Financing of defence expenditure, “I asked myself a lot of questions”.>

   On the same day, the Government decided to increase defence spending over the next five years to approximately 43 trillion yen, 1.6 times the current plan. Prime Minister Kishida reiterated the government’s policy of covering the shortfall through spending reforms and surpluses by raising taxes. He stated that the overhaul of the defence capability “simply means buying fighter jets and missiles”, and added: “I have repeatedly asked myself whether it is really good for us to finance this with debt. We still thought that we should secure stable financial resources”.

   He said, ‘It is clear that the people will have to bear the burden in the future, but not presenting it this year does not fulfil our accountability’ and said, ‘We will implement [the tax increases] in stages in multiple installments towards FY2027.’ ‘The start date will be decided next year.’

   The policy is to use corporation tax as one of the stable sources of defence expenditure, but some in the business community have expressed concern that this may cool business sentiment towards wage increases and capital investment. In response, Prime Minister Kishida said, “I would like to ask for a firm understanding that strengthening defence capability is also an issue that directly contributes to smooth economic activities, and I would like those who have spare capacity to cooperate as much as possible”.

   Regarding criticism within and outside the ruling party for the abruptness of the decision on the tax hike policy, he refuted the criticism, saying that he did not think there was anything wrong with the decision-making process. He stressed that ‘we have been discussing the revision of the three defence documents since the end of last year’. However, he said that the Government must continue to accept the various opinions and points raised by the public, and that the Government would continue to provide careful explanations.

   <China’s ‘strategic challenge’, a wide range of issues >.

   The new National Security Strategy positioned China’s external posture and military trends as “the biggest strategic challenge we have ever faced”.

   Prime Minister Kishida explained that the description “strategic challenges” was chosen because China’s challenges are not only to ensure Japan’s peace and security and the peace and stability of the international community, but also to strengthen the international order in a wide range of fields.

   At the same time, he also stated that it is essential for the peace and stability of the international community that China and Japan build constructive and stable relations, and that cooperation is possible in the fields of economy and people-to-people exchanges in a way that is beneficial to both sides.

   (Kentaro Sugiyama and Yoshifumi Takemoto)

   *Contents added.

   Source: https://jp.reuters.com/article/kishidaonnational-security-idJPKBN2T00WR

   Source 2: https://news.yahoo.co.jp/articles/24c5bfe108f53a398585426c49ad3b0da6ef7071

   Comment section: https://news.yahoo.co.jp/articles/24c5bfe108f53a398585426c49ad3b0da6ef7071/comments