Takaichi urges LDP to settle food tax cut this week

2026-07-28

PM signals decision

Prime Minister Sanae Takaichi said at a Liberal Democratic Party executive meeting on the 28th that she would 'make a decision when it is time to decide' on cutting the consumption tax on food items, LDP Secretary-General Shunichi Suzuki said at a news conference. The prime minister will instruct the LDP to finalize its position as early as this week.

30-minute talks with Aso

The same day, after the meeting, the prime minister held about 30 minutes of talks with Deputy President Taro Aso and Suzuki at LDP headquarters. They are believed to have discussed a plan to reduce the consumption tax on food items to 1% from April 2027.

Coordination continues

At the news conference on the 28th, Suzuki said of the three-way talks that 'in the positions of the president, the deputy president and the secretary-general, we exchanged views on various matters and shared our thoughts.' He did not disclose the specific agenda.

The cross-party 'National Conference on Social Security' had been aiming to reach a consensus on measures to address high prices for now, but is expected to abandon that effort. At a meeting on the 27th, working-level officials discussed an interim report that listed views from both the ruling and opposition parties, including support and opposition, on a chair's proposal to set the consumption tax on food items at 1% for two years from April 2027, and it explicitly stated that 'no agreement was reached on the specific proposal.' It will be reported as early as the 29th to a parent meeting attended by the prime minister.

At a news conference on the 27th, the prime minister said that after the cross-party debate ends, she wants to submit a bill on the consumption tax cut for food items as soon as possible. 'We want people to feel the burden relief effect as early as possible,' she said. The LDP will also hold a meeting of its tax panel as early as this week to discuss how to respond. Some in the party remain cautious about a tax cut, while others argue that the pledge made in the lower house election should be taken seriously, and some also say an earlier introduction of a 'benefit-linked tax credit' should be sought as a measure to combat high prices.

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