Japanese PM suggests holding early election prior to raising taxes to fund defence budget

A tax hike aimed at paying for the nation's defence budget is scheduled to go into effect "sometime after 2024," according to Japanese Prime Minister Fumio Kishida, who on Tuesday suggested that a quick election may be called instead. Despite fierce resistance from within the ruling coalition and Kishida's waning popularity, the government is expected to enact tax increases to make up a shortfall of 1 trillion yen ($7.47 billion) in the defence budget.

"We will be asking the general public to take on the (tax) burden for an appropriate period of time, starting from sometime after 2024 up to 2027. We'll make a decision on when it starts, and I think there could be an election by then," Kishida said in a late-night television programme aired on Tuesday.

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In an interview with Kyodo news agency, the premier stated that he is "not currently thinking about having an election next year." Unless Kishida calls for a sudden election, the following national election is scheduled for 2025.

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Kishida promised to boost defence spending to two per centof Japan's GDP by 2027 when he unveiled a new national security strategy in the middle of December.

A one trillion yen rise in taxes, according to Kishida, will provide the additional cash needed for the new defence strategy.

Koichi Hagiuda, the policy director for the Liberal Democratic Party, stated on Sunday that it was essential to dissolve parliament prior to the imposition of tax increases in order to give the public a chance to weigh in on the issue.

(With inputs from agencies)

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