Japan's rising prices make it difficult to ease pressure through tax reductions.

Recently, the Japanese government held an extraordinary cabinet meeting and approved a policy to reduce the food consumption tax. It was decided that starting from April 2027, the tax rate will be lowered from the current 8% to 1%, with the policy being effective for two years. During random interviews on the street, many Japanese citizens expressed that they have clearly felt an increase in prices over the past year, and they found it difficult to give a positive evaluation of the economic measures taken by the Koizumi cabinet. Japanese experts indicated that the effects of reducing the food consumption tax could easily be offset by the ongoing rise in prices, suggesting that this tax cut may not effectively alleviate the financial pressure on the public.