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Onodera to Head LDP's Tax Panel

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imgAccording to reports, the governing Liberal Democratic Party has chosen Itsunori Onodera, who previously led the party's Policy Research Council, to head its Research Commission on the Tax System.

Onodera is anticipated to engage in talks with the opposition Democratic Party for the People regarding plans to eliminate provisional gasoline tax surcharges and increase the minimum income threshold for taxation.

Sanae Takaichi, the LDP leader who assumed the party's highest position on Saturday, appears to be considering the DPP as a potential partner for broadening the current ruling coalition that consists of the LDP and Komeito.

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Onodera will take over from Yoichi Miyazawa, who held the tax panel chairmanship for eight years in total beginning in 2015 during the tenure of the late Prime Minister Shinzo Abe.

Throughout Prime Minister Shigeru Ishiba's current government, Miyazawa has maintained a reserved stance regarding increases to the minimum taxable income threshold, which has frustrated the DPP that supports such increases.

Having recently concluded his role as Policy Research Council chairman, Onodera persistently maintained dialogue with policy leaders from opposition parties during a period when the LDP-Komeito coalition lacks a majority in both houses of the Diet, Japan's national legislature.

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Reports indicate that Takaichi, who seeks a prompt LDP-Komeito accord to preserve the coalition, appears to be relying on Onodera's negotiating capabilities.

During a NHK TV broadcast, Takaichi referenced a collaborative agreement between the LDP, Komeito, and DPP parties regarding the elimination of gasoline tax surcharges and the increase of income thresholds. She said, "The agreement among the parties is of great significance. I want (Onodera) to play an active role on the basis of firmly sticking to the agreement."

The selection of Japan's upcoming prime minister and leader of the governing Liberal Democratic Party has become a competitive race, with multiple contenders entering the contest.

 

While departing Prime Minister Shigeru Ishiba's troubled LDP works to secure sufficient support to remain in government, former economic security minister Takayuki Kobayashi, Chief Cabinet Secretary Yoshimasa Hayashi, and Agriculture Minister Shinjiro Koizumi have all declared their intentions to run in the forthcoming LDP leadership race.

These candidates have stressed the importance of preserving party cohesion and have pledged initiatives to either stimulate economic expansion or tackle inflation concerns.

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Former foreign minister and ex-LDP secretary-general Toshimitsu Motegi became the first to declare his candidacy the previous week, while former economic security minister Sanae Takaichi is anticipated to reveal her campaign intentions within the coming days.

In early September, Ishiba declared his intention to step down as LDP leader and subsequently as Japan's prime minister, accepting accountability for the party's significant loss in the summer legislative elections. This decision paves the way for a successor to emerge through a party leadership contest now set for October 4.

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