Key Facts
• Gasoline and diesel tax repeal law passed on November 28, effective December 31 and April 1.
• Government subsidies reduce gasoline prices by ¥5 every two weeks starting November 13.
• Gasoline prices expected to drop ¥20 by November 27 and ¥25.1 by December 11.
• Public credit for price measures attributed to Prime Minister Takaiichi, not the Democratic Party.
• Democratic Party leader Tamaki rejects coalition entry, citing focus on public welfare.
• Democratic Party’s approval ratings halved, overshadowed by ruling coalition’s achievements.
• Former Ishin members join ruling coalition, securing 233 seats, surpassing the 465-seat majority.
• Democratic Party proposes further tax reforms, including abolishing vehicle weight tax and raising income tax exemption threshold.
Summary
The repeal of gasoline and diesel taxes, effective December 31 and April 1 respectively, has been approved, with government subsidies already reducing prices. Despite the Democratic Party’s role in initiating the repeal, public credit largely goes to Prime Minister Takaiichi for her decisive economic measures. Democratic Party leader Tamaki’s rejection of coalition entry has left the party marginalized, with approval ratings halved and achievements overshadowed. Meanwhile, the ruling coalition, bolstered by former Ishin members, now holds a majority with 233 seats. The Democratic Party continues to push for further tax reforms, but skepticism remains over their feasibility.
