Japan party leaders clash over consumption tax in debate ahead of election
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Japanese Prime Minister Sanae Takaichi speaking during a press conference at the Prime Minister's official residence on Jan 19.
PHOTO: REUTERS
TOKYO – Leaders of Japan’s ruling and opposition parties clashed on Jan 26 over issues ranging from consumption tax to Prime Minister Sanae Takaichi’s decision to dissolve the House of Representatives for a snap general election
At a seven-way debate, held a day before the start of official campaigning for the Feb 8 general election, Ms Takaichi, who heads the Liberal Democratic Party, touched on a key topic of great public interest, saying she hopes to realise a two-year exemption of food products from consumption tax “as soon as possible”.
If a non-partisan national council for integrated taxation and social security reforms reaches a conclusion on the changes in the system by summer, “we would be able to submit related Bills to an extraordinary parliamentary session” expected in autumn, said Ms Takaichi, who took office in October 2025.
Mr Yoshihiko Noda, co-leader of the newly formed opposition party, the Centrist Reform Alliance, said the party aims to implement zero consumption tax on food in the autumn, calling it “the most effective policy” to curb the impact of rising living costs.
Mr Noda, a former prime minister and former Constitutional Democratic Party of Japan leader, emphasised that his party would promote the tax relief plan by “clarifying the source of revenue and without having to issue deficit-covering government bonds”.
With many ruling and opposition forces pledging to suspend consumption tax on food in their campaign, questions over how to secure alternative funding and when the suspension would be introduced have come into focus, amid prolonged price increases and concerns about Japan’s fiscal health that have been affecting financial markets.
The Lower House election, the first under the premiership of Ms Takaichi, who is known for her hawkish security views and dovish fiscal stance, comes after she abruptly dissolved the powerful House at the outset of the ordinary parliamentary session on Jan 23. KYODO NEWS
