LDP approves consumption tax cut on food; cabinet decision expected this afternoon
Macro
At an extraordinary general council meeting on the morning of the 5th, the Liberal Democratic Party unanimously approved the consumption tax cut on food announced by Prime Minister Sanae Takaichi. During the meeting, some members called for a clear indication of funding sources, but fiscal hawks such as former Tax Commission Chairman Yoichi Miyazawa and former Defense Minister Gen Nakatani, who opposes the tax cut, were absent. Following this, the party will conclude its internal procedures after a policy chiefs' meeting with the Japan Innovation Party, and the government will hold an extraordinary cabinet meeting that afternoon to formalize the tax cut policy.
