TOKYO - Prime Minister Sanae Takaichi announced that Japan will cut the consumption tax rate on food and beverages to 1% from April 2027, pledging to secure the necessary funding without relying on deficit-financing bonds and to restore the rate to 8% after two years. Takaichi said she decided to proceed with the reduction after taking seriously the strong public support for a lower tax rate. The prime minister also rejected suggestions that restoring the food and beverage tax rate to 8% after two years could prove politically difficult because it would be perceived as a tax increase. The next challenge for Takaichi will be securing support within the ruling Liberal Democratic Party, where opposition to raising the tax rate again remains strong. LDP lawmaker Yuko Obuchi also formally resigned from a senior position on the party's Tax System Research Commission, which oversees discussions on consumption tax policy.