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

South China Morning Post · Feb 20, 2026 · Collected from RSS

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When Sanae Takaichi strode into her first press conference as Japan’s reappointed prime minister on Wednesday, she delivered a clear message to the economists and editorial boards warning her away from her signature tax pledge.Food consumption tax is going to be scrapped, and nothing is going to stop her.Formally confirmed in office after the Diet voted to reappoint her – following a landslide victory in the House of Representatives election on February 8 – Takaichi reiterated her commitment to eliminating the 8 per cent levy on food and announced plans to establish a cross-party “national council” to examine the matter before summer.Analysts expect the panel to report by late autumn, with any cuts potentially taking effect in early 2027.A shopper visits a supermarket in Tokyo last month. Japan currently applies an 8 per cent consumption tax to most food and drink purchases. Photo: KyodoThe pledge proved enormously popular among voters battered by years of rising prices. But critics also found it deeply alarming.