Ishiba Opposes CDPJ’s Proposed Consumption Tax Cut; Says Measures to Stabilize Rice Prices and Support Wage Increases Should Be Prioritized

By Masashi Yamaguchi / Yomiuri Shimbun Staff Writer

16:20 JST, May 1, 2025

MANILA — Prime Minister Shigeru Ishiba on Wednesday expressed his opposition to a proposed plan to cut consumption taxes, questioning the effectiveness of the measure to combat rising prices.

“[A consumption tax cut] would also reduce the burden on high-income earners and those who consume large amounts. Considering that those who suffer the most from rising prices are low-income earners, what will that mean?” Ishiba said to reporters in Manila, where he was visiting as part of an official trip that took him to the Philippines and Vietnam.

The Constitutional Democratic Party of Japan has proposed a plan to reduce the consumption tax rate on food items to 0% for a year but has not specified a source of funding.

Ishiba said the CDPJ’s proposal “has problems such as if businesses can cope with two system changes in such a short period, and how the administrative burden will be handled.”

The prime minister also said government measures such as supporting wage hikes and releasing stockpiled rice to stabilize rice prices must be “thoroughly worked out first.”

Regarding the second round of Japan-U.S. ministerial-level talks on U.S. tariff policy, Ishiba said: “Our basic stance remains totally unchanged. We will continue to demand the withdrawal of the policy.”

“This is not about who gains or loses,” Ishiba added, stressing the importance of reaching an agreement acceptable to both sides.