Takaichi plays down concerns over feasibility of two-year consumption tax cut
Prime Minister Sanae Takaichi on Sunday played down concerns over the feasibility of her plan to temporarily eliminate the 8% consumption tax on food within fiscal 2026, as the levy takes center stage during the parties’ policy debates ahead of the Feb. 8 Lower House election.Takaichi said that there is enough time before the current fiscal year ends, and that the elimination of the tax would be limited to a two-year period before her government can introduce a refundable tax credit program to support middle- and lower-income households.“Cutting the consumption tax on food is an interim measure,” Takaichi said, adding that she will not rely on the deficit-financing bonds to make up for lost revenue.
