Business
2026.08.28 16:28 GMT+8

Expert: Takaichi's tax cut could worsen Japan's fiscal strains

Updated 2026.08.28 16:28 GMT+8
CGTN

Japanese Prime Minister Sanae Takaichi plans to cut the consumption tax on food from 8% to 1%, potentially reducing government revenue by around 5 trillion yen. Yuqing Xing, professor of economics at GRIPS in Tokyo, says cutting a key source of social security revenue without an alternative could further undermine Japan's fiscal sustainability.

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