The effort to cut consumption tax on food has created a rift between Prime Minister Sanae Takaichi and several senior members of her own party who are openly critical of the plan. | REUTERS
Aug 5, 2026
Prime Minister Sanae Takaichi’s Cabinet approved a controversial plan Wednesday to drop the food consumption tax from 8% to 1% for a two-year period beginning next April.
But while the majority of the Liberal Democratic Party has endorsed the cut, it’s created a backlash within the party, as prominent veterans have voiced public opposition to lowering the tax rate, fearing it will lead to economic and political chaos.
“Many people are currently feeling the impact of rising prices for daily necessities such as food. We believe that this measure will allow those facing immediate hardship to tangibly experience the benefits of early support,” Chief Cabinet Secretary Minoru Kihara told reporters after the Cabinet approval.
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