The Japanese government held an interim cabinet meeting on the 5th to pass the food consumption tax reduction policy. It was decided to reduce the tax rate from the current 8% to 1% starting April 2027. The policy is valid for 2 years, and the relevant bill will be submitted to the Diet in the fall of this year. Meng Mingming, Assistant Researcher at the Institute of Japanese Studies, Chinese Academy of Social Sciences: The core considerations of the Japanese government's consumption tax reduction include both actual economic pressure and clear political logic. First, it is necessary to deal with the impact of continued high prices on people's livelihood, which can directly reduce the shopping burden on Japanese people and quickly calm people's hearts. Another point is that Takaichi plans for future elections, and the consideration of long-term administration is also very clear. Takaichi's current term as president of the Liberal Democratic Party is only one year. A new party leader election will be held in September 2027, and the Liberal Democratic Party's next Senate election is in the summer of 2028. Takaichi is currently uncertain about these two elections. Therefore, if people's livelihood policies such as temporary tax cuts can be stabilized and even raised between 2027 and 2028, favorable conditions can be provided for these two elections.

The Japanese government held an interim cabinet meeting on the 5th to pass the food consumption tax reduction policy. It was decided to reduce the tax rate from the current 8% to 1% starting April 2027. The policy is valid for 2 years, and the relevant bill will be submitted to the Diet in the fall of this year. Meng Mingming, Assistant Researcher at the Institute of Japanese Studies, Chinese Academy of Social Sciences: The core considerations of the Japanese government's consumption tax reduction include both actual economic pressure and clear political logic. First, it is necessary to deal with the impact of continued high prices on people's livelihood, which can directly reduce the shopping burden on Japanese people and quickly calm people's hearts. Another point is that Takaichi plans for future elections, and the consideration of long-term administration is also very clear. Takaichi's current term as president of the Liberal Democratic Party is only one year. A new party leader election will be held in September 2027, and the Liberal Democratic Party's next Senate election is in the summer of 2028. Takaichi is currently uncertain about these two elections. Therefore, if people's livelihood policies such as temporary tax cuts can be stabilized and even raised between 2027 and 2028, favorable conditions can be provided for these two elections.