LDP Approves 1% Food Tax Plan for Two Years From April 2027

2026-08-05

Two Years From April 2027

The Liberal Democratic Party approved a government policy proposal at an extraordinary General Council meeting on the morning of the 5th to cut the consumption tax rate on food products from the current 8% to 1% for two years from April 2027.

Absentees and Meeting Details

Unanimous approval by attendees is the General Council's standard practice. Gen Nakatani, a former defense minister, Yoichi Miyazawa, a former chairman of the LDP's Tax Commission, and Koichi Tani, a former chairman of the National Public Safety Commission, were absent. Nakatani opposes a consumption tax cut, while Miyazawa is known for emphasizing fiscal discipline.

Calls to Secure Funding

According to General Council Chair Haruko Arimura, participants expressed views including, 'The government should move forward while clearly presenting the funding sources' and 'Amid a challenging international and market environment, we should proceed in unity to avoid triggering unforeseen circumstances.' The news conference was held after the General Council meeting.

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