Japanese Citizens Worry About Fiscal Deterioration Under Proposed Tax Cut

Japanese citizens are expressing concern over a proposed tax reduction plan for food and beverage consumption. A recent survey revealed that 71.7% of respondents worry about Japan's fiscal condition worsening if the government implements the plan, which would cut taxes from 8% to 1%. This proposal is part of Prime Minister Sanae Takaichi's efforts to help households cope with rising prices due to a weakening yen and Middle East tensions.

The survey also showed that support for Takaichi's Cabinet has declined to its lowest point since she took office last year, with only 50.2% of respondents approving her leadership. The disapproval rate rose to 33.9%, a 0.2-point increase from the previous month.

Takaichi's aggressive spending plans have been criticized for pushing up government bond yields and weakening the yen, making Japan's fiscal condition the worst among developed countries, according to Kyodo News.