Prime Minister Sanae Takaichi and the ruling Liberal Democratic Party are adjusting to convene an extraordinary session of the National Diet late next month [2].
The move signals a significant shift in fiscal policy aimed at easing the cost of living for Japanese citizens through targeted tax relief.
The session is expected to begin in late September 2026 [2] and run for approximately 70 days [1]. A primary objective of the gathering is to pass legislation that would reduce the consumption tax on food items to 1% [1]. This reduction is planned to last for two years, beginning in April 2027 [1].
Takaichi said she wants to submit the bill to lower the consumption tax rate during the autumn extraordinary session. The prime minister said the submission of related bills would depend on reaching a conclusion within a cross-party national council regarding the food tax cuts.
Beyond tax legislation, the government is using the session to coordinate a planned cabinet reshuffle and personnel changes within the LDP. This internal reorganization is intended to solidify the ruling coalition's stability ahead of the legislative push.
An LDP senior official said the session should take about 70 days [1]. The timing and duration of the session are critical for the government to secure the necessary votes for the tax adjustments, while simultaneously managing the transition of leadership roles within the cabinet.
“reduce the consumption tax on food items to 1%”
The proposed tax cut represents a strategic attempt by the Takaichi administration to address inflation and public dissatisfaction with rising food costs. By tying the legislation to a cross-party council and a cabinet reshuffle, the government is attempting to build a broad political consensus to ensure the 2027 implementation remains viable despite potential fiscal opposition.
