Japan's Government Under Scrutiny Over Tax Cuts and Ministerial Scandal
Prime Minister Sanae Takaichi faced renewed political pressure on October 19 as fresh opinion polls showed declining public support following a ministerial resignation, while her government signaled it could issue additional bonds to finance a planned two-year consumption tax exemption on food beginning in April 2027. (News On Japan)
Japan's government is facing scrutiny over recent tax cuts and a ministerial scandal, according to October 19 reports. Prime Minister Sanae Takaichi's approval ratings have declined following Agriculture Minister Kazuo Yana's resignation, with allegations of inappropriate political pressure. The government is considering issuing bonds to finance a two-year consumption tax exemption on food, set to begin in April 2027, to combat inflation's impact on household expenses.
However, questions remain about how the government will replace lost tax revenue. The Bank of Japan is also moving toward monetary policy normalization, with Governor Kazuo Ueda stating that underlying inflation is nearing its 2% target. The controversy comes as the government balances economic growth, fiscal discipline, and foreign relations, particularly with China.
Takaichi's decision not to visit Yasukuni Shrine personally during its autumn festival was seen as an attempt to maintain diplomatic relations with China, amid concerns over high support for improved relations.
Written by urgent.news from News On Japan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
