The Japanese Prime Minister has sparked discussion, proposing a flexible approach to Japan's consumption tax rate. The suggested changes could affect the national economy and individual cost of living, as the consumption tax impacts nearly all goods and services. No concrete plan or timeline has been presented yet, but the mere mention of altering the tax rate has drawn attention to the economic policies of the current administration.

In Japan, the consumption tax (similar to VAT in other countries) plays a significant role in national revenue, funding social security and other public services. Any alteration to the tax rate is a sensitive issue, potentially affecting prices for consumers and businesses alike. Japanese citizens are particularly cautious about increases, due to concerns over perceived slowed economic growth and cost of living.

In the US and EU, consumption tax (sales tax/VAT) rate changes are similarly approached with caution, as they can have wide-ranging impacts on inflation, consumer behaviour, and overall economic health. However, unlike Japan, there is more variation between regions within these areas, creating a patchwork of tax rates.