Japan’s Takaichi pushes to scrap food tax, ignoring economists’ warnings
South China Morning Post
by Julian RyallFebruary 20, 2026
AI-Generated Deep Dive Summary
Japan’s Prime Minister Sanae Takaichi has made a bold move by pledging to scrap the country’s food consumption tax, despite warnings from economists about its potential economic impacts. In her first press conference following her reappointment after a landslide victory in the House of Representatives election, Takaichi reaffirmed her commitment to eliminating the tax, signaling a significant shift in government policy. This decision has sparked debates and concerns among experts who argue that removing the food tax could strain public finances and lead to broader economic challenges.
The move is part of Takaichi’s signature campaign promise, which she believes will alleviate financial burdens on households and stimulate consumer spending. However, economists warn that scrapping the tax may reduce government revenue by billions of dollars annually, potentially destabilizing Japan’s fiscal health. Critics also point out that previous attempts to cut taxes have led to budget deficits and higher debt levels, raising fears about long-term sustainability.
Takaichi’s announcement has drawn mixed reactions from the public and political circles. While some supporters view it as a progressive step toward easing economic pressures on middle- and lower-income families, others remain skeptical. The prime minister’s decision to ignore expert caution highlights her confidence in the policy’s benefits, though its implementation will likely be closely monitored for any unintended consequences.
This issue matters globally as Japan is one of the world’s largest economies, and any significant policy change could ripple through international markets and global economic relations. Scrapping the food tax is not only a domestic challenge but also a statement on Takaichi’s vision for economic reform, which could set a precedent for other countries considering similar policies. As the debate unfolds, the outcome will shape Japan’s economic trajectory and its role in the global economy.
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Originally published on South China Morning Post on 2/20/2026