1 Percent Consumption Tax on Foods Looms Up
Prime Minister Sanae Takaichi promised the voters in the Lower House election in February that she would eliminate consumption tax on foods. As she still hopes to start that reduction of consumption tax by the end of March 2027, the members of national conference on social security are pessimistic for the implementation. There came up an option to reduce the tax rate not from current 8 percent to 0, but to 1 percent. “It has been my long-cherished wish,” said Takaichi on elimination of consumption tax cut in her press conference on January 19 th , when she announced dissolution of the Lower House and ensuing election in February. At the time she ran for presidential election of the Liberal Democratic Party (LDP) in last October, Takaichi was negative on the issue, because of complication in system reform and low efficiency for low-income families. Takaichi’s attitude has occasionally been changed several times. After a sweeping victory in the Lower House elect...