Kishida to prioritize raising wages of employees

Japanese Prime Minister Kishida Fumio has reiterated that he will prioritize raising wages of corporate employees over reviewing taxes on capital gains of the wealthy.

Kishida was speaking in a TV Tokyo business program on Monday.

He said discussing capital gains taxes ought to be done sometime in the future, suggesting that a review will not be included in the next fiscal year's taxation plan. He had previously indicated that increasing such taxes could be a way to correct the country's wealth disparities.

Kishida said the priority is to raise wages, and expressed the idea of tax incentives for companies that increased each employee's wage.

But he denied that he would raise the consumption tax to secure fiscal resources to correct wealth disparities.

In the TV program, Kishida welcomed the move of Taiwan's TSMC to consider jointly building a plant in Kumamoto Prefecture with Japan's Sony Group. TSMC is the world's largest contract manufacturer of semiconductor chips.

He described it as very important from an economic security standpoint and said that the government will support it. He added that his economic measures would include support for such moves.

Kishida named US President Joe Biden as the first national leader he wants to meet in person. He said the Japan-US alliance is the cornerstone of Japan's foreign policy. He referred to his long experience as foreign minister and stressed the importance of building bilateral trust.