2026 POLLS: Noda Focuses on Resources to Offset Consumption Tax Cut

Tokyo, Jan. 27 (Jiji Press)–When to cut the consumption tax on food and how to offset the resultant revenue loss will be the focus of the Feb. 8 election for the House of Representatives, said Yoshihiko Noda, co-leader of the Centrist Reform Alliance. The Centrist Reform Alliance was formed by lawmakers of the all-important lower chamber of the Diet, Japan’s parliament, from the Constitutional Democratic Party of Japan and Komeito, which has quit the ruling coalition led by the Liberal Democratic Party. “All (major) parties advocate reducing the consumption tax on food,” Noda said in a recent interview with Jiji Press. “So the focus is when to implement it and whether alternative financial resources can be secured.” “Cutting the consumption tax on food will cost 5 trillion yen annually,” he said. “We can secure almost 10 trillion yen by dipping into funds piled up excessively.” “While doing that, we can establish a permanent financial resource from profits at our proposed government-linked investment fund,” he added. Noda criticized Prime Minister Sanae Takaichi for changing her policies many times, such as her abrupt announcement of a plan to suspend the consumption tax on food. “If she had made up her mind last October, it would have become certain long ago that the measure would be implemented within this fiscal year,” he said. Asked whether the centrist party will accept discussions on the consumption tax cut at the nonpartisan national conference on tax and social security reforms proposed by Takaichi, Noda said the prime minister has never proposed such discussions. “What has happened to the promise (to opposition parties) to jointly design the proposed refundable tax credit system?” he asked. Regarding whether his party aims to take power in the election, Noda said that “there would be such a possibility if we become the largest force (in the lower chamber), but we aren’t sure we can gain that much support.” Noda expressed hope that the new party will succeed in creating a new political trend of centrists that will open up a new era and a wave of political realignment. He expects more lawmakers to join the party if it performs well in the Feb. 8 election. Although the Centrist Reform Alliance started at the Lower House, Noda said he hopes that CDP and Komeito members in the House of Councillors, the upper chamber, and eventually local assembly members, will join the centrist party. END [Copyright The Jiji Press, Ltd.]