TOKYO — On Wednesday, August 5th, 2026, Japanese Prime Minister Sanae Takaichi's cabinet decided to implement a consumption tax cut on food. This move quelled resistance from cautious lawmakers within the ruling Liberal Democratic Party by invoking a campaign pledge made during the recent general election, which secured a historic victory for the party.

The decision highlights Takaichi's strong influence over the ruling party's decision-making process. Internal Affairs Minister Yoshimasa Hayashi and Transport Minister Yasushi Kaneko were present with the Prime Minister at the prime minister's office during the announcement.

This tax cut is seen as a fulfillment of election promises and a strategic response to internal party concerns.

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