Prime Minister Sanae Takaichi is advocating for a two-year exemption on the consumption tax for food items, an initiative she describes as a 'long-cherished goal.' In her policy address on the 20th, she emphasized the need to accelerate discussions towards this goal, planning to summarize intermediate findings and introduce related legislation by summer. Takaichi’s recent electoral success has provided her with a strong mandate, and she aims to convene a 'national meeting' for discussions involving both ruling and opposition parties, with hopes of hosting the meeting as early as February.

While Takaichi's proposal is seen as beneficial for consumers, it raises significant concerns among some members of her own party regarding the implications for social security funding, which is heavily reliant on consumption tax revenues. Nevertheless, Takaichi has countered these hesitations by pointing out the political ramifications of failing to fulfill electoral promises, arguing that candidates do not run on the platform of reducing the consumption tax only to abandon the cause. She asserts that it is essential for the ruling party to unite around the commitments made to the electorate.

The upcoming discussions in the national meeting may bring to the forefront the delicate balance between immediate consumer relief and the long-term sustainability of social welfare programs. With the government moving forward despite internal skepticism, there is a clear indication of a push towards implementing the consumption tax reduction, but the negotiation outcomes with opposition parties remain crucial to watch as they influence the broader political landscape in Japan.