
Aug 5, 2026
✦Reuters
Japan's ruling party backs Takaichi's costly food tax cut plan despite fiscal concerns
Japan’s ruling Liberal Democratic Party signed off on a food tax cut plan on Wednesday. Championed by Sanae Takaichi, the policy slashes food taxes from 8% to 1% starting April 2027. While it aims to help households, the move creates a 5 trillion yen revenue shortfall, sparking many serious fiscal concerns.