Prime Minister Sanae Takaichi is pushing for a cut in the consumption tax on groceries to help Japanese households as inflation eats away at their income and savings.
Analysts warn that this move could spook markets, deepen fiscal worries and ultimately backfire on the administration.
¡°Lowering the consumption tax on food items is expected to provide direct relief to households and generate some economic stimulus. However, it also comes with hefty fiscal spending,¡± according to a report released Tuesday by Daiwa Institute of Research.?
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