Motohisa Furukawa, tax policy chief for the National Democratic Party, called for a plan to effectively eliminate consumption taxes on food [1].

This proposal arrives as Japan grapples with rising living costs. A successful shift toward zero taxation on essential goods could significantly lower the financial burden on households, though it creates a substantial gap in the national budget that the government must address.

Speaking June 26 after a working-level meeting of the cross-party Social Security National Council in Tokyo, Furukawa said the party wants the government to explain how it will secure the necessary financial resources to support this tax shift [1, 2, 3].

While some reports suggest the government has considered a limited tax reduction to 1% [4], the National Democratic Party is advocating for a move toward a practical zero percent rate [5]. Other proposals have suggested that such tax reductions should be limited to a two-year period [6].

Furukawa said the government must present these funding options, with a goal of having them clarified within June [1]. The debate over consumption tax remains a central point of contention among political factions, with some members of the administration seeking a broader consensus on tax cuts [7].

Other officials said that discussions regarding the reduction of the consumption tax are ongoing [8]. However, the scale of the reduction—whether a modest dip to 1% or a total elimination—remains a point of disagreement between the ruling coalition and opposition parties [4, 5].

“effectively eliminate consumption taxes on food”

The push for a zero-percent consumption tax on food represents a strategic effort by the National Democratic Party to force the government into a transparent debate over fiscal priorities. By demanding a specific funding plan by the end of June, the party is shifting the conversation from whether a tax cut is popular to how it is mathematically sustainable. This creates a political crossroads for the administration: either find a new revenue stream or risk being seen as indifferent to the cost-of-living crisis.