Japan · Nation Thailand
Japan may use government bonds to fund two-year food tax cut to 1%
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Government borrowing could finance Japan ’s proposed two-year food tax cut to 1%, Prime Minister Sanae Takaichi indicated on Monday (October 19).
Key facts
- Ruangroj warns of ‘AI theatre’ citing AI investment at 1.7% of revenue in 2026
- Japan’s plans to ease the impact of rising prices combine an income-linked benefit programme with a reduction in food consumption tax from 8% to 1%.
- she told the Committee on Budget in the House of Councillors , the upper chamber of the National Diet , Japan’s parliament.
- Thailand approves THB58.9bn rice support and production reform plan
Summary
“We are not ruling out bond issuance,” she told the Committee on Budget in the House of Councillors , the upper chamber of the National Diet , Japan’s parliament.
Chief Cabinet Secretary Minoru Kihara placed Takaichi’s reference to bonds within the wider budget process, saying it “was made in the context of the overall budget formulation”.