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Japan’s plan to cut the food sales tax is moving forward after Prime Minister Sanae Takaichi reportedly told senior ruling party leaders her intentions to reduce the tax on food items from 8% to 1% for two years.
According to the Yomiuri newspaper, the temporary food tax cut is scheduled to start in April 2027 as the measure is part of the government’s effort to reduce the burden of cost living on families.
Japan food sales tax
The report stated that Prime Minister Sanae Takaichi presented the proposal during a meeting with former Prime Minister Taro Aso and Liberal Democratic Party (LDP) Secretary General Shunichi Suzuki. However, former Prime Minister Taro Aso signaled that he would not oppose the plan if Prime Minister Sanae Takaichi decided to move forward with it.
The government is expected to finalize the proposal at a cabinet meeting in early August before submitting the legislation during the autumn session of parliament. Neither the Japanese government nor the ruling Liberal Democratic Party (LDP) has offered immediate comment on the report.
Japan food sales tax proposal is aimed at lowering household expenses as consumers continue to struggle with rising food prices. Prime Minister Sanae Takaichi has said the reduced tax rate would remain in place for two years before being replaced by a new financial support program designed to assist low- and middle-income households.
This proposal has drawn criticism from lawmakers in both the ruling and opposition parties, they questioned how the government intends to make up for the expected loss in tax revenue.
Economists have raised concerns about Japan’s rising public debt, noting that government bond yields have gone up in recent weeks as investors closely watch the administration’s spending plans.
The Japan food sales tax plan still needs approval from parliament. The government is expected to share more details when the proposal is formally submitted.
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