Japanese Prime Minister Eyes Tax Break on Food Ahead of Election

Japanese Prime Minister Sanae Takaichi is contemplating suspending the sales tax on food as part of her campaign for the upcoming general election. The decision could significantly impact government revenue. Takaichi's political maneuvers also include plans to dissolve parliament and call a snap election.

Japanese Prime Minister Sanae Takaichi is considering a proposal to suspend the sales tax on food, aiming to sway voters in the upcoming general election, according to a report by the Mainichi newspaper citing anonymous sources.

Eliminating the 8% levy on food sales could result in an annual revenue loss of approximately 5 trillion yen ($30 billion). Before making a decision, Takaichi and the Liberal Democratic Party (LDP) will thoroughly evaluate the market implications.

In pursuit of strengthening her mandate on fiscal reforms, Takaichi plans to dissolve parliament on Friday and call for a snap election, possibly scheduled for February 8, according to sources within the LDP.

(With inputs from agencies.)