Japan’s Takaichi pushes to scrap food tax, ignoring economists’ warnings

South China Morning PostEN 1 min read 100% complete by Julian RyallFebruary 20, 2026 at 02:30 AM

AI Summary

short article 1 min

Sanae Takaichi, reappointed as Japan's prime minister, is moving forward with her plan to eliminate the 8% consumption tax on food, despite warnings from economists. Takaichi reaffirmed her commitment after her reappointment following the February 8th election and announced the formation of a cross-party council to examine the issue before summer. The council is expected to report by late autumn, potentially leading to tax cuts in early 2027. The proposal has gained popularity among voters facing rising prices. Critics, however, are concerned about the economic implications of removing the tax.

Key Entities & Roles

Key Player Opposition Context

Kyodo 30% Tokyo 40% House of Representatives 60% Diet 70% Japan ×280% Sanae Takaichi ×390%

Keywords

food tax 100% consumption tax 80% tax cut 70% japan 70% sanae takaichi 60% economic policy 50% rising prices 50% house of representatives election 40%