Japanese Prime Minister Takahashi pushes 1% food tax cut for two years

Prime Minister Takahashi met with LDP tax‑policy chief Goten Onodera and instructed him to coordinate with other parties on a cross‑party “National Conference” proposal to reduce the consumption tax on food from 8% to 1% for a two‑year period beginning in April 2027. The plan would allocate the 1% revenue foregone to cash benefits for low‑income households, effectively making the food tax “zero” for the period.

The proposal, presented without prior debate, has drawn sharp criticism from opposition parties, which warn that the cut would cost over ¥4 trillion in revenue and could lead to a sharp tax increase later. Commentators describe the move as an “odd, rapid‑response” strategy lacking a clear financing plan. Takahashi has framed the cut as a transitional measure toward a longer‑term “tax credit with income‑linked benefits” and intends to submit related legislation in the upcoming special session of parliament.