Japan Prime Minister Takaichi Says to Aim for Zero Consumption Tax on Food Within Fy26

The Yomiuri Shimbun
Prime Minister Sanae Takaichi speaks during a press conference on Monday.

TOKYO (Jiji Press) — Prime Minister Sanae Takaichi said Sunday that she will aim for realizing a zero consumption tax rate on food items within fiscal 2026, which starts in April.

Takaichi, also president of the ruling Liberal Democratic Party, made the remark during discussions on the proposed tax cut, a key issue in the upcoming House of Representatives election, on a television debate program with the leaders of other parties.

The LDP included in its policy pledges for the Feb. 8 election a commitment to accelerate discussions on reducing the 8% consumption tax rate to zero for food items for two years.

On the debate program, Yoshihiko Noda, cochief of the newly formed Centrist Reform Alliance, advocated for the implementation of the zero consumption tax starting this autumn. The centrists’ policy pledges feature the achievement of a permanent zero tax rate on food products.

Takaichi said that “the substances of each party’s proposals differ” regarding the zero consumption tax on food, emphasizing the need to swiftly design the taxation system.

Fumitake Fujita, coleader of the Japan Innovation Party, the LDP’s new coalition partner, echoed the prime minister, saying, “We will pass legislation to realize this [consumption tax reduction] within fiscal 2026.”

Noda, while serving as leader of the Constitutional Democratic Party of Japan, had advocated for a consumption tax cut starting Oct. 1. On the program, he explained, “We will spare no effort to implement it within this year without issuing deficit-covering government bonds.” He said introducing the zero tax rate this autumn would be “possible.”

Yuichiro Tamaki, leader of the Democratic Party for the People, expressed opposition to a consumption tax cut limited to food items. He then said, “If the tax cut is to be implemented in fiscal 2026, the cabinet decision on the fiscal 2026 government budget bill must be redone.”

Tomoko Tamura, head of the Japanese Communist Party, proposed a plan to reduce the consumption tax rate uniformly to 5%.

Akiko Oishi, co-leader of Reiwa Shinsengumi, called for the early abolition of the consumption tax, while Sanseito leader Sohei Kamiya advocated for its phased elimination.