Japan Approves Bill to Cut Food Consumption Tax to 1%
The Japanese government has approved a bill to reduce the consumption tax on food from 8% to 1% for two years beginning in April 2027, while pledging to finance the measure without issuing deficit-covering government bonds, although it has yet to specify how it will cover the estimated 10 trillion yen cost. (News On Japan)
The Japanese government has approved a bill to reduce the consumption tax on food from 8% to 1% for two years starting in April 2027. The finance minister, Satsuki Katayama, defended the proposal as the most effective means of delivering relief to households, emphasizing both the adequacy and speed of the support. The legislation aims to create a revenue shortfall of approximately 10 trillion yen, which the government intends to finance without issuing deficit-covering government bonds.
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