Particle.news
Download on the App Store

Japan’s Takaichi Calls Feb. 8 Snap Election to Seek Mandate for Spending, Food Tax Holiday and Defense Push

Bond yields hit a 27-year high after she proposed suspending the 8% food tax.

Overview

  • She will dissolve the lower house on January 23, triggering a 16-day campaign that NHK says is the shortest since World War II.
  • The election will decide all 465 lower-house seats as the LDP tries to turn roughly 60–62% approval ratings into a firmer majority.
  • Takaichi is staking her political future on a platform of higher public outlays, an accelerated defense build-up and a two-year suspension of the 8% consumption tax on food.
  • The government estimates the tax relief would cut revenue by about ¥5 trillion annually, and the 10-year JGB yield rose to a 27-year high after the pledge.
  • Opposition parties caution that the compressed timetable could delay passage of the record ¥122 trillion fiscal 2026 budget.