Overview
- Multiple government and ruling party sources say the pledge under discussion would temporarily zero out the consumption tax on food.
- The LDP–Nippon Ishin coalition pact in October 2025 authorized consideration of legally exempting food and beverages from the tax for up to two years.
- Internal views favor beginning any zero-rate scheme within fiscal 2026, though no final decision has been announced.
- Estimates cited in reporting suggest eliminating the levy on food would leave roughly ¥5 trillion less in revenue each year.
- Some officials warn that even announcing a cut could affect the yen and long-term government bond yields, as the new Centrist Reform Union presses tax relief as a flagship policy.