Japan's government on Friday dismissed the idea of reducing the consumption tax rate to help soften the blow from inflation and U.S. tariffs, brushing aside growing calls from the opposition and even some ruling party lawmakers for tax relief measures.

Chief Cabinet Secretary Yoshimasa Hayashi reiterated that cutting the consumption tax, a key revenue source for debt-ridden Japan, would not be "appropriate." His comment came as senior government officials said the government and the ruling Liberal Democratic Party are moving to rule out a tax cut as an option.

Despite the apparent reluctance, the Komeito party, the junior coalition partner of the LDP, is floating the idea of a consumption tax cut targeting food items as it pushes to reduce tax burdens for households in the run-up to the House of Councillors election this summer.

Prime Minister Shigeru Ishiba has taken a cautious stance about lowering the tax, currently set at 8 percent for food and beverages, and 10 percent for other items. But he has underlined the need for consultations with Komeito.

"Given that consumption tax revenue is designated as an important source to support the social security system for all, we think it's not appropriate to reduce it," Hayashi told a press conference.

Changing the tax rate tends to be a divisive issue and requires the prime minister to have enough political capital to spare. The ruling coalition plans to list items that should be included in a new economic package before the upper house election.

With U.S. President Donald Trump's move to impose higher tariffs on imports casting a pall over the outlook for the export-driven Japanese economy at a time of entrenched inflation, the largest opposition Constitutional Democratic Party of Japan is calling for removing the consumption tax rate on food items for one year.

"Are we really OK without taking new measures?" CDPJ chief Yoshihiko Noda told a press conference, with both cash handouts and tax cuts appearing to be off the table for the government and the LDP.

Noda, a former premier known as an advocate of fiscal consolidation who pushed for tax hikes when he was in office, has said a tax cut is temporarily needed due to the severity of the situation facing ordinary people.

Within Ishiba's LDP, dozens of lawmakers calling for more fiscal stimulus are urging the party leadership to consider making food and beverages tax free for an unlimited period.

Japan, whose fiscal health is the worst among advanced economies, spends about a third of its annual state budget on social security expenses, which include medical costs and pension benefits.

When the consumption tax rate was raised to 10 percent from 8 percent in 2019, the government vowed to use the increase in revenue to cover social security costs.