Party Representatives’ Questions in Diet: Takaichi Says Consumption Tax Cut Merely a Stopgap Measure

Editorial

16:17 JST, February 26, 2026

If the government insists on pushing ahead with the election pledge of consumption tax cuts based on a predetermined conclusion, the “national debate” advocated by Prime Minister Sanae Takaichi cannot be realized.

It is also difficult to understand why the tax cut is being positioned as a “stopgap” until the introduction of refundable tax credits. Takaichi should consider the importance of the consumption tax, the core funding source for the social security system, in a spirit of openness and honesty.

Representatives of ruling and opposition parties in both the House of Representatives and the House of Councillors questioned Takaichi on her policy speech. The focus was on the government and ruling bloc’s proposal to set the consumption tax rate on food items at zero for two years.

Centrist Reform Alliance leader Junya Ogawa said, “Now that the ruling bloc has become so massive, the prime minister should take responsibility for implementation.”

In response, Takaichi said that the national council, composed of cross-party lawmakers, would “advance a national debate.” Takaichi also indicated that she aims to introduce the refundable tax credits, which would combine income tax cuts and cash payments, through discussions at the national council.

If that is the primary objective, it makes more sense to provide benefits to low-income individuals as a stopgap measure rather than creating a drain on precious tax revenues.

Also, Satoshi Takayama, the secretary general of Team Mirai, which gained seats in the recent House of Representatives election, delivered his first question as a party representative, pointing out that reducing the consumption tax could accelerate the yen’s depreciation and potentially fuel rising prices.

There is considerable caution, particularly among members of younger generations, regarding reducing the consumption tax rate without alternative funding sources. The government and the ruling and opposition parties must not pass the burden on to future generations.

During the representatives’ questioning, social security system reform was also on the agenda. Yuichiro Tamaki, head of the Democratic Party for the People, called for setting the copayment rate for the so-called medical care system for the late-stage elderly, those ages 75 and older, at 20% in principle. Team Mirai proposed a 30% copayment rate in principle.

On the topic of the copayment, Takaichi said that the government would “carefully consider” the matter, without elaborating. Medical expenses are projected to reach ¥50 trillion this fiscal year. Discussions of reforms that would increase the burden are unavoidable.

The Constitutional Democratic Party of Japan questioned the situation of a political party branch headed by Takaichi having given gift catalogs for items worth ¥30,000 to each of the Liberal Democratic Party members who won seats in the lower house election. Takaichi said: “I made the donation to express appreciation for their efforts, among other reasons. There is no legal issue.”

In general, the Political Funds Control Law prohibits monetary donations to individual politicians’ political activities, but it allows donations from political parties, including their branches. Takaichi appears to believe there is no legal issue.

However, then Prime Minister Shigeru Ishiba drew criticism last year after he distributed ¥100,000 worth of gift certificates to first-term LDP members of the House of Representatives. Takaichi must also refrain from actions that could raise suspicions.

(From The Yomiuri Shimbun, Feb. 26, 2026)