Japan’s finance minister rules out sales tax cuts despite election setback | investingLive

Japan’s Finance Minister Katsunobu Kato said Monday that the government would take the ruling coalition’s poor performance in the upper house election “seriously,” but reiterated that cutting the country’s consumption tax remains off the table.

“The government has consistently stated that sales tax cuts are not appropriate,” Kato told reporters, reinforcing Tokyo’s stance even amid growing political pressure. He emphasized the importance of maintaining fiscal discipline, citing Japan’s already elevated public debt and the potential for adverse market reactions.

Calls for tax relief have intensified following the ruling Liberal Democratic Party’s (LDP) disappointing showing in the recent upper house vote. However, Kato made clear that any response would be measured, with a focus on long-term fiscal stability rather than short-term political gains.