The government and Takaichi’s Liberal Democratic Party (LDP) will carefully assess the market impact before deciding, as scrapping the 8% levy on food sales would cut government revenue by an estimated ¥5 trillion (US$30 billion) a year, the newspaper said in the report late on Friday.

A call to the Prime Minister’s Office seeking comment went unanswered today.

Takaichi plans to dissolve parliament on Friday and call a snap election as she seeks public backing for spending plans that have rattled financial markets.

She is considering holding the election on Feb 8, two LDP lawmakers have told Reuters.

The LDP formed a coalition government in October with the right-leaning Japan Innovation Party, known as Ishin, paving the way for Takaichi to become the country’s first female prime minister.

The parties said that they had agreed to consider legislation that would exempt food and beverages from the consumption tax for two years, without providing further details.