January 26, 2026

Japanese Communist Party Executive Committee Chair Tamura Tomoko, on a TV debate program aired on January 25, argued that the consumption tax should be abolished, and proposed an immediate emergency measure to lower the tax rate on all goods and services to 5%.

Appearing on Fuji TV’s debate program along with other party leaders, Tamura stated, “The zero consumption tax on food items for two years which is advocated by the Takaichi-led LDP-Ishin government would most likely cause a major recession due to a tax hike after two years. Therefore, a permanent tax cut is necessary.”

Tamura added, “Reducing taxes on all goods and services, including food, beverages and eating out, would be effective. The JCP is calling for an immediate, uniform cut in the consumption tax to 5% as an emergency measure.”

Tamura explained that the JCP is proposing that tax breaks and preferential taxation for large corporations and major shareholders be reviewed; the rate of the corporate tax for large companies be restored to its original level; and a wealth tax on the rich be created enabling over 16 trillion yen to be secured in order to implement the lowering of the sales tax to 5%.

Most political parties are pledging consumption tax cuts in their election platforms. LDP President Takaichi Sanae and all the other party leaders, except Democratic Party for the People head Tamaki Yuichiro, said that the tax cut for food products should be implemented by the end of fiscal 2026.

Tamura criticized Prime Minister Takaichi for dissolving the House of Representatives without holding budget deliberations, stating, “If the consumption tax is to be set at 0% in fiscal 2026, budget deliberations at the Diet should have been held by now!”

While indicating “within fiscal 2026”, PM Takaichi did not specify the schedule for implementing the 0% rate on food. She merely said that this would be decided by a cross-party council which will be set up to discuss integrated reforms of the tax and social security systems.

During the extraordinary Diet session last December, Takaichi said that she would not reduce the consumption tax rate. However, on January 19 at a press conference when she announced the Lower House dissolution, she suddenly proposed a limited consumption tax cut. The LDP’s campaign pledge only states that they will “accelerate consideration” of a 2-year limited zero-tax for food items.