8:00 JST, September 12, 2026

Japan’s consumption tax has a history of significantly impacting the nation’s politics, economy, and society.

From an overseas perspective, it may be difficult to understand why a single tax system could spark such intense controversy. The highly attentive nature of the Japanese people is likely a factor, and this is expected to remain a highly contentious issue in the future.

Globally speaking, one historical example of a tax increase becoming a major social issue is the United Kingdom’s poll tax. Introduced by Margaret Thatcher’s administration in the late 1980s, the poll tax was a local tax levied on all people aged 18 and older, regardless of income. It sparked fierce opposition and riots across the U.K. and was abolished after only a few years.

Class divisions remain deeply entrenched in the U.K., and the system required both the wealthy and low-income earners to pay the same amount, which likely placed an extremely heavy burden on the poor and sparked strong discontent.

One of the most sensitive taxes in the United States is the gas tax.

The federal gas tax has not been raised from 18.4 cents per gallon since 1993. The United States is one of the world’s most car-dependent societies, where cities are designed with the use of automobile as a fundamental element. Because of the regressive nature of the tax — meaning that the burden falls disproportionately on low-income households with limited financial resources — raising the gas tax is a political taboo.

The burden of the gas tax is relatively light by global standards, making it a viable option for fiscal consolidation, but any politician who advocates for a gas tax increase risks political suicide.

Income inequality in Japan is not as severe as in the United States and Europe, but this is precisely why the consumption tax — imposed on a wide range of products — is the most politically sensitive.

The........

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