Keidanren Chairman Calls for Clarification of Alternative Social Security Funding Sources for Consumption Tax Cuts

The Yomiuri Shimbun

15:52 JST, January 28, 2026

The chair of Keidanren (the Japan Business Federation), Yoshinobu Tsutsui, on Tuesday urged Japan’s political parties, which have made cutting the consumption tax a key part of the agenda in the ongoing lower house election campaign, to clarify alternative funding sources to replace the revenue the tax now brings in.

“Clarification of alternative funding sources is essential. I want [the parties] to conduct thorough discussion and consideration,” Tsutsui said at a regular press conference.

Tsutsui emphasized that he has not changed his position that the consumption tax is “an important stable source of revenue supporting social security.”

He pointed out that “ensuring the sustainability of the social security system” and securing “the confidence of financial markets” are basic preconditions for cutting taxes. He added, “We hope they will provide explanations that are acceptable to voters on points such as the impact [of the cuts] on small and medium-sized businesses.”

Akio Yamaguchi, chair of the Japan Association of Corporate Executives (Keizai Doyukai), echoed Tsutsui’s concern.

“I feel it’s dangerous to proceed [toward cutting the consumption tax] without sharing the benefits, drawbacks and risks [with the public],” he said.