Takaichi to seek September outline on 1% food tax cut

2026-08-04

September outline decision signaled

At a Liberal Democratic Party executives' meeting on the 4th, Prime Minister Sanae Takaichi said she intends to draw up the ruling bloc's tax reform outline in September regarding a plan to cut the consumption tax rate on food items to 1% from April 2027. She asked party leaders to 'provide solid backing' ahead of submitting a bill to an extraordinary parliamentary session.

LDP Secretary-General Shunichi Suzuki said this at a press conference after the executives' meeting. The prime minister said, 'We will further advance the detailed design of the system, decide on the outline in September and submit a bill to the extraordinary Diet session.'

Party procedures advance

The party will examine the government's basic policy draft on the consumption tax cut at its General Council on the 5th. The prime minister asked for 'your support until the party makes its formal decision.'

The LDP approved the basic policy draft at a joint meeting of the Tax System Research Commission and the Social Security System Research Commission on the 3rd. It put front and center the prime minister's argument that the tax cut is a 'campaign pledge' and dismissed opposition views.

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