Japan's opposition Democratic Party for the People has indicated it will support the draft supplementary budget for this fiscal year. The development came after the opposition party exchanged a written agreement with the ruling camp on steps to realize its demand to raise the minimum annual income subject to taxation.

With the DPFP's expression to support, the supplementary budget bill is expected to pass through the Lower House by a majority vote.

Secretary-general of the DPFP Shimba Kazuya and his counterparts of the ruling coalition of the Liberal Democratic Party and Komeito intermittently held talks on Wednesday.

Their talks came after the DPFP suggested it might not support the budget plan if there was no progress in talks with the ruling bloc on raising the minimum taxation threshold from the current level of 1.03 million yen, or about 6,750 dollars. The DPFP has promised to work for the increase in the tax threshold in its campaign for the October Lower House election.

Wednesday's agreement says tax deductions will be expanded starting next year with the aim of raising the threshold to 1.78 million yen, or about 11,660 dollars, as requested by the DPFP.

The three-party agreement also says an additional tax on gasoline will be scrapped, without specifying the timing.

It adds that relevant officials will proceed with sincere discussions on concrete ways to implement the two themes.

Shimba of the DPFP told reporters that the party appreciated the agreement as it states "the aim of raising the tax threshold to 1.78 million yen," as well as the scrapping of the additional gasoline tax.

He expressed gratitude to his counterparts of the Liberal Democratic Party and Komeito.

Shimba also said the three parties will enter concrete and realistic negotiations based on the agreement, making results from them clear and leading to progress.

He added that his party hopes to return tax to the people as soon as possible, and revitalize their lives and enrich the nation.