Japan's LDP Promises Tax Incentives For Firms Raising Wages

Japan's ruling Liberal Democratic Party (LDP) is set to promise tax incentives to encourage companies to raise wages as part of its campaign for the upcoming general election, part of new Prime Minister Fumio Kishida's push to boost middle-class incomes.

Photo Insert: Prime Minister Fumio Kishida meets with the LDP leadership.

The LDP platform will also include the enactment of legislation on economic security, according to a draft obtained by Kyodo News, an issue Kishida is focusing on amid fierce competition over technology development between the United States and China.

LDP is expected to approve the campaign promises at its decision-making General Council on Friday, and formally announce the platform early next week.

Kishida, who took office on Monday after being chosen as LDP leader, has said he will dissolve the House of Representatives on Oct. 14 and call a general election on Oct. 31.

The LDP, which is looking to maintain control of the powerful lower house of parliament along with its coalition partner Komeito, will pledge financial aid to people hit hardest by the coronavirus pandemic, including those without regular employment or raising children, according to the draft.

The platform will also include pushing forward debate on making changes to Japan's postwar Constitution, including amending the war-renouncing Article 9 to include a reference to the Self-Defense Forces.

Kishida on Thursday said he will follow through with his pledge to deliver a "large-scale" stimulus package to give the pandemic-hit economy a shot in the arm as campaigning started for two upper house by-elections.

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