Japanese PM Sanae Takaichi may pledge to suspend the 8% sales tax on food as part of her campaign for a snap election next month.
TOKYO: Prime Minister Sanae Takaichi is considering a pledge to suspend the sales tax on food as part of her campaign for a general election next month.
The Mainichi newspaper reported the plan, citing unnamed sources.
The government and Takaichi’s Liberal Democratic Party will carefully assess the market impact before deciding.
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Scrapping the 8% levy on food sales would cut government revenue by an estimated 5 trillion yen (RM150 billion) a year.
A call to the Prime Minister’s Office seeking comment went unanswered on Saturday.
Takaichi plans to dissolve parliament on Friday and call a snap election.
She seeks public backing for spending plans that have rattled financial markets.
She is considering holding the election on February 8, two LDP lawmakers told Reuters.
The LDP formed a coalition government in October with the right-leaning Japan Innovation Party, known as Ishin.
This paved the way for Takaichi to become the country’s first female prime minister.
The parties said they had agreed to consider legislation to exempt food and beverages from the consumption tax for two years.
They did not provide further details. – Reuters
