The plan, which will cut an estimated 4.4 trillion yen in revenue from the government's coffers has already drawn criticism from her own Liberal Democratic Party, including former ministers Taro Kono and Takeshi Iwaya. In a post on X, Kono, former defense minister under the Abe administration, warned that the plan could undermine confidence in Japan's fiscal position, push interest rates higher and weaken the yen. Iwaya, who served as foreign affairs minister in 2024 and 2025 has also argued against the cut, reportedly saying "The risk is very high. If the market reacts negatively, the yen will weaken further and import prices will rise." Even the International Monetary Fund urged Tokyo to not reduce the consumption tax in its 2026 country report, saying it was "an untargeted measure that would erode fiscal space and add to fiscal risks."