Will Takaichi’s consumption tax cut break the LDP?
Debate on the consumption tax debate has become a test of party cohesion for the LDP under the prime minister's leadership.
Prime Minister Sanae Takaichi's announcement to reduce the consumption tax for two years was initially intended to mend divisions within the ruling Liberal Democratic Party (LDP). However, the move has instead deepened the rifts and left Takaichi uncertain about her ability to pass the necessary legislation amid party dissent. Despite extensive deliberations spanning several months, the LDP failed to reach a consensus on the issue.
While the General Affairs Council of the party formally endorsed the tax cut on Wednesday, the actual outcome is far from unanimous. A total of nine members were absent from the crucial decision-making session, with former Defense Minister Gen Nakatani and former Tax System Research Council Chairman Yoichi Miyazawa among those who abstained due to opposition.
Given the council's rule of unanimous consent, it appears that additional members may have also boycotted the meeting out of protest. This failure to achieve consensus raises questions about Takaichi's capacity to navigate the internal tensions and implement the unpopular tax reduction, placing her at the mercy of public opinion and the party's members who oppose her fiscal policies.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
