Takaichi’s Cabinet approves consumption tax cut on food
While the majority of the Liberal Democratic Party endorsed the cut, some party veterans opposed lowering the tax rate, fearing it will lead to economic and political chaos.
On Wednesday, Prime Minister Sanae Takaichi's Cabinet approved a plan to reduce the food consumption tax from 8% to 1% for a two-year period starting next April. The move, while supported by the majority of the Liberal Democratic Party, has sparked criticism within the party, with veteran members expressing concerns over the potential economic and political consequences of lowering the tax rate.
Chief Cabinet Secretary Minoru Kihara defended the decision, stating that the measure will provide tangible relief to individuals facing immediate hardship due to rising prices for daily necessities like food.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
