Prime Minister Sanae Takaichi’s Cabinet on Tuesday approved an outline of a system to reduce the consumption tax on food products from 8% to 1% for a two-year period beginning next April.
The plan, which calls for making up lost revenue from the tax cut through a review in government spending and revenue and not relying on deficit bonds, forms the basis of related bills expected to be submitted to the autumn session of parliament.
The consumption tax is to be reduced from 8% to 1% for two years beginning next April. After that, from April 2029, the government aims to introduce new benefits for low- and middle-income households.
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