Japan Ruling Party Still Mulling Sales Tax Cut to Zero for Food

Japanese Prime Minister Sanae Takaichi’s ruling party is continuing to focus on whether to cut the sales tax on food to zero, largely casting aside proposals for a smaller reduction to 1% that would be easier for retailers to implement.

“As far as the discussions I just heard, they continue to center on zero” Daishiro Yamagiwa, chair of the Liberal Democratic Party’s tax policy subcommittee, told reporters after a meeting on Monday. “There was no talk of 1%.”

The ruling party pledged during February’s general election campaign to speed up discussions on suspending the tax on food for ...