Prime Minister Sanae Takaichi is expected to announce in her policy speech on Friday that the government will present a public-private investment road map for its growth strategy in March. The road map will promote bold investment and support international expansion by businesses in 17 strategic fields. The government also plans to compile ideas on a two-year consumption tax reduction limited to food items before summer and expedite related tax reform bills.
Prime Minister Sanae Takaichi is set to deliver her policy speech to both houses of Japan's Diet on Friday, announcing that the government will submit a public-private investment road map for its growth strategy in March. This initiative, as detailed in a draft obtained by The Yomiuri Shimbun, aims to encourage bold investments and facilitate international business expansion across 17 strategic fields.
The speech draft outlines plans to finalize proposals for a two-year consumption tax cut limited to food items before summer, accelerating the submission of accompanying tax reform legislation. This cut is framed as a temporary relief measure pending the rollout of 'refundable tax credits,' which merge income tax reductions with direct payments. The government commits to funding without new bond issuance and to debating the plan in a cross-party 'national council.' Takaichi will pledge to foster a 'strong economy' where tax revenues grow organically without rate hikes, advancing 'responsible and proactive public finances' to end cycles of excessive austerity and underinvestment in the future. The draft also commits to lowering the government debt-to-GDP ratio and defining clear indicators to bolster market confidence.
On foreign policy, the speech will address evolving the 'free and open Indo-Pacific' initiative, proposed by former Prime Minister Shinzo Abe a decade ago. Efforts will focus on fortifying economic bases like supply chains for critical materials, generating growth via public-private partnerships, and broadening security ties.
Regarding policies for foreigners, the government intends to review regulations on land purchases by non-citizens. Referencing the 'secondary capital' concept from the Liberal Democratic Party's coalition agreement with the Japan Innovation Party, Takaichi will urge prompt assessment of its roles and functions.
On North Korea's abductions of Japanese citizens, she will state, 'I want to achieve the return of all victims during my term,' vowing to 'create a breakthrough without ruling out any options,' potentially including a Japan-North Korea summit.
