Japan PM Takaichi to compile interim plan on sales tax cuts by early summer, submit tax reform bills promptly

Japan’s Prime Minister Takaichi said she will aim to compile an interim plan on sales tax cuts by early summer and promptly submit related tax reform bills for consideration.

The Prime Minister also announced plans to halt the sales tax on food and beverages for two years. She indicated that the move would be funded without relying on deficit-financing bonds, signalling an effort to balance fiscal support with financial discipline.

On the economic front, Takaichi stated that the government will accelerate efforts to develop rare earth resources from the seabed near Minamitori Island, highlighting Japan’s push to strengthen supply chain resilience.

Addressing security concerns, Takaichi said Japan is confronting its most challenging security environment since World War II. She pointed to rising coercion from China, ongoing nuclear and missile programs in North Korea and Russia’s continuing invasion of Ukraine as key factors shaping Japan’s strategic outlook.