Prime Minister Takashi Takaichi said a conclusion on a consumption-tax cut could be ready by early August [2].

The timeline is critical as the government seeks to reduce the consumption-tax rate on food to 1% to alleviate economic pressure on citizens. The decision follows a party-leaders' debate in the National Diet held approximately two months after the previous session [1].

During the discussion with leaders from six opposition parties, Takaichi addressed the progress of the "National Conference." He said that work on the proposal would be completed in time for early August [2]. Takaichi said he has asked the chairperson to ensure discussions continue through the end of July to reach a conclusion that satisfies many people [2].

Opposition leaders expressed skepticism regarding the current progress. Yuichiro Tamaki, leader of the Democratic Party for the People, said that the chairperson's proposal had not yet reached an agreement among the various parties. Tamaki questioned whether there was still room for further consultation or if the chairperson's proposal was the only remaining option [3].

Beyond tax policy, the debate touched upon the Prime Minister's conduct. Junya Ogawa, leader of the Center Reform Union, raised concerns regarding a controversial "defamation video." Ogawa said the situation created an impression that the prime minister was evading responsibility. He said that he felt the situation called into question Takaichi's qualifications as prime minister [3].

Takaichi denied the reports concerning the defamation video during the session [1]. The prime minister said that the government is focused on the legislative goals of the National Conference as the August deadline approaches [2].

“"8月の頭ぐらいでしたら十分に作業的に間に合います"”

The push to lower food taxes to 1% represents a significant shift in fiscal policy aimed at combating inflation. By setting a concrete early August deadline, Takaichi is attempting to project decisive leadership and bipartisan cooperation. However, the friction with opposition leaders over both tax details and personal conduct suggests that the administration may face a difficult path to achieving a full consensus in the National Diet.