Food Consumption Tax Cut Plan Stalls as PM Sanae Takaichi Faces Criticism Over Inflation Response and Policy Gridlock
Losses continue in gubernatorial and mayoral elections nationwide
In the committee, she emphasized that the shortage of naphtha—an issue directly linked to rising prices—is being “resolved swiftly.” However, as she gazes ahead with a pensive expression, the question remains: is there truly a clear path toward solving inflation?No breakthrough in sight
With a vacant expression, gazing vaguely into empty space—on April 24, Prime Minister Sanae Takaichi (65) appeared visibly fatigued during a session of the House of Representatives Committee on Health, Labour and Welfare. It has been six months since the Takaichi Cabinet was formed on April 21, yet challenges continue to pile up.
According to a political reporter from a national newspaper, “The biggest concern—rising prices—shows no sign of abating. Thanks to measures carried over from the Ishiba administration, such as the abolition of the provisional gasoline tax rate and subsidies for electricity and gas, inflation had temporarily slowed. However, the consumer price index in March rose again. The roughly 7,000-yen subsidies for electricity and gas that had been provided in March have ended, and there is still no clear resolution to tensions in the Middle East. Utility costs are expected to rise further. Urgent countermeasures are required.”
However, it is difficult to say that Prime Minister Takaichi has presented concrete solutions. Her stated long-cherished goal of eliminating consumption tax on food items within the fiscal year is being discussed through a newly established national council, but no path toward consensus is in sight. Journalist Tetsuo Suzuki states, “Her seriousness is not being conveyed.”
He explains, “Looking at the council’s minutes, about 80% of the discussion centers on refundable tax credits, not tax cuts themselves. In the first place, there is no need to go through such a council designed merely for consensus-building; this could be debated directly in the Diet. With her current strong majority, she could push it through if she were truly serious, yet she does not take that step. There is no sense of determination that she will definitely accomplish it.”
Takaichi has long cited the time required to modify cash register systems as the biggest obstacle to implementing a consumption tax reduction. A proposal to reduce the tax rate by 1%, which could be implemented within a few months due to relatively simple system changes, has also begun to be considered, but its realization remains uncertain. Professor Jun Kitajima of the Social Design Graduate School of Management comments:
“The Takaichi administration is maintaining high approval ratings, and since there are no national elections until the summer of 2028 Upper House election, there is no immediate need to rush into tax cuts. It could also be used as a trump card if approval ratings decline. Even if the issue of cash register systems is overcome, another ‘reason why it cannot be done’—such as protecting the restaurant industry—will likely emerge.
The real issue is inflation. It will become especially pronounced in the summer. Naphtha inventories in Japan, which affect many everyday products as a key plastic raw material, are reaching a critical shortage level, and prices across the board will rise. Whether the government can present hope to the public before then will be the true test.”
No Mercy for Veteran Councilors
Although Takaichi secured a historic landslide victory in the February lower house election, signs of her political “magic” beginning to fade are becoming apparent, possibly due to her perceived inaction on rising prices.
In March, ruling party–endorsed candidates were defeated in the Ishikawa gubernatorial election and the Kiyose mayoral election in Tokyo.
The losses continued into April. In eight mayoral and ward elections held in places such as Fukuoka and Aichi, Liberal Democratic Party–backed candidates were also defeated. Notably, in the Nerima ward mayoral election held on April 12, a candidate supported by Finance Minister Satsuki Katayama (66) suffered a crushing defeat despite her active campaigning.
As Takaichi faces growing cold scrutiny within the party over her declining electoral performance, dissatisfaction among party members is deepening further due to her treatment of veteran lawmakers.
A series of personnel changes removed two senior figures from their posts: Ichiro Aisawa (71), chair of the Lower House electoral system council—who had called proposed cuts to the number of Diet seats “out of the question” on social media—and Yasukazu Hamada (70), chair of the House Steering Committee, who was reportedly dismissed due to dissatisfaction within Takaichi’s office over what was seen as excessive consideration for opposition parties in parliamentary management.
According to a Liberal Democratic Party mid-level lawmaker, “In the six months since taking office, Takaichi has had only a handful of meetings with senior party figures, such as a lunch with Vice President Taro Aso (85). Face-to-face meetings and study sessions have drastically decreased, and she remains shut away in her office. If someone does not align with her intentions, even veterans are removed without hesitation. She is becoming like a suspicious, authoritarian leader.”
As Takaichi becomes increasingly isolated within the party, there are concerns that not only the realization of her zero consumption tax policy but even the stability of her administration could be at risk.
Journalist Suzuki notes, “Her exclusionary stance and heavy-handed personnel decisions are building frustration among party lawmakers. For now, strong approval ratings are keeping dissent contained, but once those ratings begin to fall, the dissatisfaction will erupt all at once.”
To overcome these difficulties, the only option is to meet public expectations and maintain high approval ratings.
From the May 15-22, 2026 issue of “FRIDAY”
PHOTO： Takeshi Kinugawa