Takaichi wants swift bill on food tax cut, urges growth gains

2026-07-27

Food tax cut and social security

Prime Minister Sanae Takaichi said at a news conference on the 27th after the Diet closed that she expects an early conclusion from the cross-party National Conference on Social Security regarding a consumption tax cut on food items. She said she wants to submit a bill promptly after reaching a conclusion so the public can feel the burden relief as soon as possible.

On social security, she said she wants to advance the details of reforms and clarify the roadmap within fiscal 2026. Regarding the drafting of the fiscal 2027 budget, she said it would be the first budget to reflect 'responsible proactive fiscal policy' across the entire budget process, stressing that it would mark 'the first year of responsible proactive fiscal policy.' On gross domestic product growth, she said she wants to establish real growth above 1% and nominal growth above 3% as soon as possible, and raise them further.

Economic view and external relations

On the domestic economy, she said Japan is not in deflation in the sense of a sustained decline in prices. She also said that if, in economic terms, any rise in prices itself is called inflation, then the current situation is inflation.

At the same time, she said whether to issue a 'declaration of exit from deflation' needs to be judged carefully by comprehensively considering the underlying trend in prices and the background. She also said the situation is not one in which Japan can say it has exited deflation, and that it is necessary to closely monitor the impact of Middle East developments on the real economy.

On Japan-China relations, she said that precisely because there are concerns and issues, it is important to continue dialogue and communication at all levels and on various occasions. She also said she intends to respond calmly and appropriately from the standpoint of national interest.

Government management and party response

On a bill to cut the number of House of Representatives seats, she said she would refrain from commenting from the perspective of the prime minister, adding that it is included in the Liberal Democratic Party's campaign pledge. She said that based on the mandate from the lower house election, the government will push ahead to deliver on the campaign pledge and the coalition agreement.

On a possible cabinet reshuffle or LDP executive appointments, she said she has nothing to say at this point. She also declined to comment on the possibility of the Constitutional Democratic Party of Japan joining the ruling coalition, saying that depends on the other side's intentions.

On a bribery allegation involving the posts of chairperson and vice chairperson of the Fukuoka prefectural assembly, she said it is important first for the LDP's Fukuoka prefectural chapter to thoroughly verify the facts, and urged the party headquarters to consider necessary measures if there is anything it should address.

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