Decision on Japan consumption tax cut left to PM after cross-party talks fail

TOKYO - Japan's ruling and opposition parties on Wednesday wrapped up months of discussions on a proposed consumption tax cut on food and beverages without a consensus, leaving the decision on the step aimed at mitigating the impact of inflation on consumer spending to Prime Minister Sanae Takaichi.

Takaichi is expected on Thursday to instruct her Liberal Democratic Party to move ahead with the plan to slash the tax rate to 1 percent from the current 8 percent for two years from April 2027. The ruling camp has been pushing for it and will now work toward Cabinet approval early next month.