LDP members worry about two-year tax cut’s impact on 2028 poll
Under the plan, the consumption tax rate on food will be lowered to 1% for two years from next April.
Members of the Liberal Democratic Party (LDP) are worried that Prime Minister Sanae Takaichi's proposal to cut the consumption tax rate on food for two years could harm the ruling party's performance in the 2028 House of Councilors election. The tax rate would drop to 1% in April and return to 8% a year later. This could make the tax increase a major campaign issue.
Upper House member Shoji Nishida opposes the plan, stating that frequent changes to the consumption tax rate disrupt society. Takaichi's decision to cut the tax rate without a permanent economic clause has drawn criticism, as she declared she will restore the tax rate in two years. Some LDP members are concerned about Takaichi's lack of consistency, similar to former Prime Minister Naoto Kan, who lost an Upper House election after flip-flopping on the consumption tax.
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