Japan postpones planned consumption‑tax cut as opposition stalls talks

Japan’s government has abandoned its goal of reaching a consensus on a consumption‑tax reduction by the end of June. The ruling party’s proposal to lower the rate on food to 1 % for two years – part of a broader plan to bring the national consumption tax down to 1 % – was blocked by strong opposition resistance in the Diet and internal dissent within the ruling coalition. Party officials noted that the tax‑cut negotiations, originally targeted for completion before the parliamentary session ends on 17 July, will be delayed, raising doubts about the feasibility of the policy. The setback also coincides with the resignation of a senior tax‑policy official, highlighting growing challenges for the administration.

The delay underscores heightened partisan conflict over major reforms, including proposals on parliamentary seat reduction and other legislative items, and raises questions about the government’s ability to secure fiscal measures amid a tightening budget and rising living costs.