Prime Minister Sanae Takaichi’s proposed plan to cut the tax on food purchases risks lowering Japan’s revenues and undermining the nation’s finances in the long term, according to S&P Global Ratings in a sign of its rising concerns.
“The risk of tax cuts, such as on some sales tax items, is that this is not a one-off hit, and it would lower government revenues on a sustained basis,” Rain Yin, director of sovereign ratings based in Singapore, told Bloomberg on Wednesday in an emailed statement.
“With a structural increase in expenditure components, this would further worsen the government’s ...
