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Takaichi Calls Snap Election for Feb. 8, Sets Lower House Dissolution for Jan. 23

She seeks voter approval for higher spending with a two-year suspension of the 8% food tax.

Overview

  • After dissolving the chamber on Jan. 23, the campaign will open Jan. 27 with voting and counting on Feb. 8, according to her timetable.
  • Takaichi said she is putting her political future on the line as she asks for a mandate to accelerate a new security strategy.
  • Her platform features a two-year halt to the 8% consumption tax on food, which government estimates say would cut revenue by about ¥5 trillion annually.
  • Japanese stocks climbed on the snap-election prospect while 10-year government bond yields hit a 27-year high on the tax-cut signal.
  • Opposition forces moved to consolidate as the Constitutional Democratic Party and Komeito announced a merger into a centrist Reform Party after Komeito quit the LDP coalition in October.