Kishida Favors Economic Growth Before Wealth Distribution

Prime Minister Fumio Kishida said he will seek to achieve economic growth in Japan before redistributing wealth during questioning by opposition lawmakers over his policy speech last week ahead of a House of Representatives election.

Photo Insert: Prime Minister Fumio Kishida believes that, without growth, there will be no wealth to distribute.

Kishida underscored that he will not immediately seek to raise the tax rate on capital gains or other financial assets. He had earlier said changing the tax would be an option, leading to sharp falls in Tokyo stocks last week, Kyodo News.

"Unless there is growth there is nothing to distribute. It is important to seek growth first, and I will do my utmost to realize it," Kishida said in response to questions by Yukio Edano, head of the main opposition Constitutional Democratic Party of Japan, in the lower house.

Kishida vowed in his policy speech on Friday to realize a virtuous cycle of economic growth and redistribution of its success.

The envisioned raising of the tax on capital gains and dividends is a major pillar of Kishida's policy to redistribute wealth and address income disparities. But he toned down his remarks on the issue after his position apparently hurt investor sentiment.

This forced Kishida to make clear in a television program on Sunday that he is not considering changing the tax for the time being, and that there is a widespread misunderstanding about it.

The question session in the Diet will be held through Wednesday, and Kishida is set to dissolve the lower house on Thursday for an election on Oct. 31.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic