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Japan PM Won’t Rule Out ¥5 Trillion Food Tax Cut Bonds

By Drooid · Oct 20, 2026, 6:09 AM UTC · How we work

Summary

Story summary

Prime Minister Sanae Takaichi said she will not rule out issuing bonds to fund a two-year food tax cut.
The temporary tax cut will cost ¥5 trillion ($31.5 billion) per year.
The cut starts in April next year and runs for two years.
Takaichi said the government will review spending and revenue to lower the debt-balance-to-GDP ratio.
She clarified she will not rely on special deficit-covering bonds to fund the tax cut.

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Story summary

Prime Minister Sanae Takaichi said she will not rule out issuing bonds to fund a two-year food tax cut.
The temporary tax cut will cost ¥5 trillion ($31.5 billion) per year.
The cut starts in April next year and runs for two years.
Takaichi said the government will review spending and revenue to lower the debt-balance-to-GDP ratio.
She clarified she will not rely on special deficit-covering bonds to fund the tax cut.