Former Prime Minister Shigeru Ishiba said Tuesday that the government should consider reviewing its plan to lower the consumption tax on food [1].
This position signals potential instability for a key economic proposal intended to provide relief to consumers. If the government fails to secure support from the business community, the planned tax cut may be delayed or abandoned entirely.
Ishiba spoke during an appearance on a Fuji TV news program, where he addressed the government's proposal to reduce the consumption tax rate on food items to 1% [1]. The plan is currently scheduled to begin in April 2027 and run for two years [1], [2].
Ishiba said that there is a valid option to refrain from implementing the tax cut and instead maintain current tax rates [1]. He said that if the tax rate does not align with the actual economic situation, the government should revise its approach.
"There may be such a case. I believe it is appropriate for that to exist," Ishiba said [1].
He specifically pointed to the influence of the business sector on the policy's viability. Ishiba said that if voices from the business world call for a pause, it suggests the government has not gained sufficient understanding or agreement from those stakeholders [1].
While some earlier campaign promises from the Liberal Democratic Party and the Japan Innovation Party suggested a total removal of the food consumption tax for two years, the current government proposal is limited to a 1% rate [3]. There remains a discrepancy regarding whether the tax will automatically revert to previous levels after the two-year period expires [4].
Ishiba said that the policy should remain flexible based on evolving circumstances [1].
“I believe it is appropriate for that to exist”
Ishiba's comments highlight a tension between populist campaign promises of zero-percent food taxes and the pragmatic constraints of government administration. By suggesting that the 1% plan could be scrapped in favor of the status quo, he is emphasizing the necessity of 'Keidanren-style' business consensus before implementing major fiscal shifts, potentially delaying relief for households facing inflation.



