FOCUS: Japan's Touchy Consumption Tax Faces First-Ever Cut

Tokyo, Aug. 2 (Jiji Press)--Since its introduction in 1989, Japan's consumption tax has been raised three times and now accounts for about 30 pct of total national tax revenue, making it the nation's largest core tax category.

If implemented, Prime Minister Sanae Takaichi's plan would mark the first-ever reduction in the tax's history. The proposal would lower the tax rate on food purchased at stores, excluding restaurant meals, from 8 pct to 1 pct for two years starting next April, as part of measures to support households struggling with the rising cost of living.

Historically, the consumption tax has been a political minefield for administrations involved in its introduction or subsequent increases. Often described as a "gateway to misfortune," the tax has played a decisive role in shaping the political fortunes of prime ministers, many of whom suffered crushing election defeats or were forced to resign.

Resignations, Abandonments

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