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July 24, 2026
 

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CONSUMPTION TAX

LDP lawmaker Itsunori Onodera (right), who chairs the National Council on Social Security, in Tokyo on Thursday
51³Ô¹ÏÍø / Politics
Jul 16, 2026
Parties agree on new benefit program but stay divided over consumption tax on food
While there is agreement to a refundable tax credit for certain workers, debate on cutting the consumption tax on food is expected to intensify.
After the suprapartisan National Conference on Social Security working-level meeting, Itsunori Onodera (left), chairperson of the LDP¡¯s Research Commission on the Tax System, speaks to reporters at the Diet building on Monday.
BUSINESS
Jul 14, 2026
Japan National Council chief modifies draft of new benefit program
The revision proposes concrete support measures, including benefit payments to low-income earners and people who cannot work due to diseases or disabilities, in fiscal 2029.
Prime Minister Sanae Takaichi speaks during a meeting on economic policy at the Prime Minister's Office in Tokyo on Thursday.
51³Ô¹ÏÍø / Politics
Jun 27, 2026
Japan government to avoid deficit-covering bonds for food tax cut
The move to avoid the issuance of deficit-covering bonds follows a policy that Prime Minister Sanae Takaichi has consistently emphasized.
A draft by a tax panel calls for reducing the consumption tax rate to 1% for food for two years from April 2027.
BUSINESS / Economy
Jun 25, 2026
Interim draft on two-year food tax cut presented
The proposal calls for reducing the tax rate to 1% for food for two years from April 2027.
Prime Minister Sanae Takaichi at a Lower House budget committee session on Monday
51³Ô¹ÏÍø / Politics
Jun 22, 2026
Takaichi says consumption tax cut would last only two years
Asked if the cut would expire after two years even if the economy worsened, the prime minister said the measure is only ¡°a bridge¡± until a refundable tax credit program is created.
The nonpartisan National Council discusses a consumption tax reduction in Tokyo on Wednesday.
51³Ô¹ÏÍø / Politics
Jun 18, 2026
Takaichi acknowledges proposed cut of consumption tax on food to 1%
The plan has divided party members and raised concerns about its impact on financial markets.
The ruling Liberal Democratic Party pledged during February¡¯s general election campaign to speed up discussions on suspending the tax on food for two years.
BUSINESS / Economy
Jun 16, 2026
LDP still considering cutting sales tax to zero for food
The ruling party pledged during February¡¯s general election campaign to speed up discussions on suspending the tax on food for two years with a view to going ahead with it.
A consumption tax cut on groceries is intended to help households struggling to make ends meet.
BUSINESS / Economy
Jun 12, 2026
Consumption tax cut on groceries could do more harm than good
It could lead to less confidence in Japan¡¯s fiscal state, a weaker yen, higher rates and slower economic growth.
Since adjusting cash register systems for a 1% tax rate would take less time than for zero percent, implementing 1% next April is gaining support within the government and ruling parties.
51³Ô¹ÏÍø / Politics
Jun 7, 2026
Final decision on tax cut left to PM Takaichi: LDP exec
Since adjusting cash register systems for a 1% tax rate would take less time than for zero percent, implementing 1% next April is gaining support.
Prime Minister Sanae Takaichi during a party leaders' debate at the Lower House of parliament in Tokyo on May 20. A pledge to cut the consumption tax on food products is quickly becoming a policy headache for the prime minister.
51³Ô¹ÏÍø / Politics / ANALYSIS
Jun 4, 2026
Consumption tax cut is quickly turning into a headache for Takaichi
Translating the pledge from Prime Minister Sanae Takaichi¡¯s administration into policy has proven more complicated than many lawmakers anticipated.
Prime Minister Sanae Takaichi speaks during a meeting at the Prime Minister's office in Tokyo last month.
51³Ô¹ÏÍø
Jun 2, 2026
Takaichi administration considering 1% tax on food from next April
A tax cut to 1% would require less time to update cash register systems and could be implemented sooner than her campaign pledge of zero percent.
Mathias Cormann (left), secretary-general of the OECD, and Prime Minister Sanae Takaichi meet at the Prime Minister's Office on Tuesday.
BUSINESS / Economy
May 13, 2026
OECD chief sees Japan¡¯s zero consumption tax plan as costly
Prime Minister Sanae Takaichi¡¯s administration plans to reduce the consumption tax on food items to zero for two years to cope with inflation.
Some are calling for the food tax rate to be set at 1% instead of fully shelving the tax, so that changes needed for cash register systems becomes easier and require less time.
51³Ô¹ÏÍø / Politics / FOCUS
Apr 29, 2026
Food tax rate of 1% pitched as industries push back on PM¡¯s campaign promise
Although the government aims to implement the two-year tax cut to 0% within fiscal 2026, it would take a year to make cash register systems compatible with such a rate.
Prime Minister Sanae Takaichi discusses tax reduction at a national council in Tokyo on Feb. 26.
51³Ô¹ÏÍø / Politics
Mar 10, 2026
CRA might join national council on consumption tax cut after all
Like the Democratic Party for the People, the party fears the political cost of not taking part in talks over the proposed consumption tax cut for food items.
Yuichiro Tamaki, head of the Democratic Party for the People, speaks to reporters in Tokyo on Wednesday.
51³Ô¹ÏÍø / Politics
Mar 5, 2026
DPP to join panel on consumption tax cut
The Democratic Party for the People¡¯s announcement comes after it, along with the Centrist Reform Alliance, skipped the panel¡¯s inaugural meeting on Feb. 26.
Prime Minister Sanae Takaichi during a parliamentary session on Thursday. While Takaichi wants to use a nonpartisan panel to achieve consensus across party lines on how to pause consumption tax on groceries for two years, opposition parties are concerned about the political fallout of being seen as agreeing too much, or not enough, with her effort.
51³Ô¹ÏÍø / Politics
Feb 26, 2026
Consumption tax panel kicks off without two opposition parties
Prime Minister Sanae Takaichi had hoped to use the panel to achieve consensus across parties on how to lift the tax for two years.
Prime Minister Sanae Takaichi delivers her policy speech during the House of Representatives plenary session in Tokyo on Friday.
51³Ô¹ÏÍø / Politics
Feb 20, 2026
Touting ¡®responsible and proactive¡¯ fiscal policy, Takaichi seeks to reassure markets
In her policy speech to parliament, the prime minister attempted to alleviate concerns that her policies are overly expansionary.
Prime Minister Sanae Takaichi speaks in a news conference Wednesday night at the Prime Minister¡¯s Office.
51³Ô¹ÏÍø / Politics / FOCUS
Feb 19, 2026
Takaichi¡¯s rocky road ahead to eliminate consumption tax on groceries
Before the Feb. 8 Lower House election, Prime Minister Sanae Takaichi pledged to eliminate consumption tax on groceries for two years. How will she deliver?
The International Monetary Fund has issued a warning that a reduction of Japan's consumption tax would erode its fiscal space and add to fiscal risks.
BUSINESS / Economy
Feb 18, 2026
IMF urges Japan to avoid cutting sales tax amid higher expected borrowing costs
The fund described such a move as ¡°an untargeted measure that would erode fiscal space and add to fiscal risks.¡±
Junya Ogawa, the new head of the Centrist Reform Alliance, speaks at a news conference in Tokyo on Friday after winning the party's leadership election.
51³Ô¹ÏÍø
Feb 16, 2026
CRA to study joining national congress on consumption tax cut
Shinji Inoue, deputy secretary-general of the ruling Liberal Democratic Party, said he wants ¡°as many parties as possible¡± to join the national congress.
Japan scientists identify clusters of protein believed to trigger Alzheimer¡¯s disease
A team of researchers said they found a ¡°seed¡± that accelerates the amyloid beta accumulation process in the brain, naming it ¡°Peak 1 amyloid beta,¡± as seen in a mouse's brain.
Indian brothers make manga debut in Japan
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Low-income families in Japan cut food and air conditioning during summer break
Yumiko Watanabe, the chairperson of nonprofit Kidsdoor, explains the results of a survey in Tokyo's Chiyoda Ward on July 1.
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