Takaichi pledges review of consumption tax amid Diet session closure
Takaichi states government will consider pointed-out issues on tax cuts as Japan faces extreme heat and economic headwinds
Prime Minister Takaichi held a press conference at the Prime Minister’s Official Residence on 27 July 2026, commencing at 6:00 pm, immediately following the closure of the special session of the Diet. The briefing, which was broadcast live by NHK News Japan, focused on the administration’s response to public and political pressure regarding fiscal policy, specifically addressing calls for a reduction in the consumption tax.
During the session, Takaichi stated that the government would “accept the pointed-out issues and consider them” in relation to a potential consumption tax cut. While the Prime Minister acknowledged the concerns raised during the parliamentary proceedings, the source material does not provide specific details on the timeline or parameters of any proposed policy adjustments. The statement reflects a cautious approach to fiscal reform as the government navigates ongoing economic debates.
The press conference took place against a backdrop of significant environmental and economic challenges. Japan is currently experiencing extreme heat, with temperatures in the Shikoku and Kyushu regions approaching 40 degrees Celsius. Concurrently, the Japanese yen remains at historically low levels, prompting discussions among economists and former finance officials regarding the potential for market intervention to stabilise currency values.
Beyond fiscal matters, the Prime Minister’s office is managing several concurrent national issues. A fatal fire in Imari, Saga, has resulted in four deaths, including a family of four. Additionally, the government is overseeing the import procedures for US fresh potatoes, a move that is advancing despite ongoing public apprehension and debate regarding agricultural safety standards.
The political environment also saw Defence Minister Koizumi questioned regarding the objectives and challenges associated with strengthening national defence capabilities. Meanwhile, IT company Hatena published a report detailing funds lost to special fraud schemes, highlighting continuing concerns over cyber-enabled financial crimes. The Japan Meteorological Agency also issued a tsunami advisory for the Pacific coast following a magnitude 8.2 earthquake, though this event is distinct from the political proceedings at the Diet.
