Japan's prime minister warns retailers of reputation risk if food tax cut isn't passed on

On Oct. 1, Prime Minister Sanae Takaichi told a Nippon Television Network audience that retailers must pass the planned consumption-tax reduction on food and beverages onto consumers, or risk harming their reputation. She argued that the tax cut will essentially be reflected in price reductions and dismissed concerns that it could fuel inflation, pointing out that the items affected are daily necessities with expiration dates, limiting the impact of any surge in buying.

Takaichi noted that the effect of stockpiling on consumption would be relatively small. The related legislation is expected to be discussed during an extraordinary session of the Diet convening on Oct. 5. She also reflected on her administration's upcoming first anniversary and declined to comment on potential re-election ambitions, saying her focus remains on delivering promised policies.