Japan's plan to cut food sales tax raises $30bn funding question

PoliticsGrowth investment and defense buildup risk competing with measureJapanese Prime Minister Sanae Takaichi asserts that deficit-covering bonds will not be used to fund a consumption tax cut on food. (Photo by Ken Suzuki)SHUNSUKE USHIGOMEJuly 31, 2026 02:05 JSTTOKYO -- Japanese Prime Minister Sanae Takaichi said again Thursday that she intends to lower the consumption tax on food without relying on deficit-covering bonds, but questions remain about how to fund the measure alongside growth investments and increased defense spending.