Takaichi defends plan to combine consumption tax cut with income-based cash payments

Prime Minister Sanae Takaichi says cutting the food tax to 1% from April 2027 and introducing targeted payments next year would increase households’ disposable income. | JIJI

Oct 7, 2026

Prime Minister Sanae Takaichi on Wednesday defended her plan to combine a consumption tax cut with income-based cash payments, putting relief from rising living costs at the center of her responses to Lower House questioning.

Responding to Mitsunari Okamoto, head of the major opposition party Komeito, who asked whether just direct cash payments could deliver faster relief, Takaichi said cutting the food tax to 1% from April 2027 and introducing targeted payments next year would increase households’ disposable income, laying the groundwork for a long-term tax credit plan.

The proposed tax reduction, from the current 8%, would last two years. Legislation to implement the package is expected to be submitted during this session.

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