Japan’s Prime Minister Sanae Takaichi on Monday announced a snap general election for February 8. Takaichi said the lower house will be dissolved on January 23, with campaigning beginning from January 27.
The Prime Minister said the election is aimed at securing a mandate for higher government spending, tax cuts, and a new national security strategy.
As part of her economic pitch, Takaichi promised a two-year suspension of the 8% consumption tax on food, a move designed to ease household pressures, boost spending, and generate employment.
However, government estimates suggest the tax cut could reduce annual revenue by around 32 billion dollars. The announcement rattled financial markets, pushing yields on Japan’s 10-year government bonds to a 27-year high earlier in the day.
Photo Source: X/@takaichi_sanae
