Key facts
- Nearly 75% of Japanese business leaders want a strict two-year limit on the planned food tax cut.
- Concerns include undermining competition and fiscal discipline.
- Restaurants not covered by the tax cut could be adversely affected.
- The government approved a move to cut the consumption tax on food to 1%.
Nearly three-quarters of Japanese business leaders surveyed by Nikkei believe the government's planned consumption tax cut on food should be strictly observed for two years. This sentiment stems from concerns about potentially undermining competition and fiscal discipline, according to the survey.
Some executives have voiced worries that restaurants, which would not benefit from the tax cut, could be negatively impacted. The government has approved a move to reduce the consumption tax on food to 1%. Prime Minister Sanae Takaichi is reportedly facing internal pushback from her ruling Liberal Democratic Party over the populist nature of the tax cut, with questions raised about how it will be funded.