Takaichi Proposes Landmark Food Tax Reduction to Combat Rising Cost of Living in Japan

Politics

The Prime Minister is moving forward with a $30 billion reduction to the 1% rate, notwithstanding fiscal sustainability concerns

A customer shops for food at a Tokyo supermarket in 2025. (Photo by Nanami Sato)

TSUBASA SURUGA and AKANE OKUTSU

TOKYO — In an effort to mitigate the impact of inflation on Japanese households, Prime Minister Sanae Takaichi is advancing plans to implement a historic reduction in the consumption tax on food. While the move aims to provide relief to citizens facing rising costs, the proposal has also sparked debate regarding the implications for Japan’s fiscal stability.

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