Key facts
- Prime Minister Sanae Takaichi said she would not rule out issuing bonds to fund a planned consumption tax cut on food.
- The tax cut is scheduled to take effect in April next year and last for two years.
- The government aims to cushion households from rising living costs.
Japanese Prime Minister Sanae Takaichi said on Monday that she would not rule out issuing bonds to fund a planned two-year cut to the country's consumption tax on food, scheduled to begin in April next year. Takaichi told parliament that the government will seek to lower the debt-to-GDP ratio by reviewing both spending and expenditure. She highlighted that the government could raise proceeds to fund the scheduled sales tax cut. Takaichi also stated that Japan can heighten market trust in the yen by pursuing steps to strengthen the economy. The government has outlined a plan to reduce the 8% levy on food items to cushion households from rising living costs.