Japan's Ruling Coalition Plans Consumption Tax Cut Amid Rising Costs

Japan's ruling coalition is exploring a temporary reduction in the sales tax rate to alleviate the financial burden on households and businesses amid rising living costs and U.S. tariffs. The proposed tax cut, primarily targeting food items, has garnered support from Komeito's leader Tetsuo Saito, who emphasized the need to ease economic pressures on citizens. While some members of the Liberal Democratic Party (LDP) back the initiative, others express caution due to the reliance on tax revenues for funding social welfare amid Japan's aging population. The plan may face legislative challenges, which could delay implementation, but interim cash payouts are being considered as a quick relief measure. Overall, the coalition aims to address immediate financial concerns while balancing the long-term need for revenue to sustain social security systems.