Takaichi pledges to cut food consumption tax without issuing new bonds
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Japanese Prime Minister Sanae Takaichi delivered a policy address to Japan's parliament on October 5, pledging to cut the consumption tax on food products without issuing new bonds in order to shore up market confidence. Takaichi said the bill would lower the consumption tax on food and beverages from 8% to 1% for two years, starting in April 2027, alongside measures to provide cash assistance to low- and middle-income earners to ease the financial burden on households amid inflation. She also said the government will promote domestic investment by completing a five-year action plan by the end of this year, focusing on investment in risk management areas such as economic security and cyber defense, as well as core industries like artificial intelligence and semiconductors. She also expressed her commitment to pushing through legislation to reduce the number of seats in the House of Representatives, one of 21 bills the government plans to submit during the current session, along with a bill on diversifying crude oil import sources and a bill setting regulations on land ownership in areas critical to national security.