Consumption tax cut bill passes Japan's lower house
TOKYO (Kyodo) -- A bill to cut the consumption tax on food and beverages and introduce an income-linked cash benefit program was passed by Japan's Hou
The consumption tax reduction and income-linked cash benefit bill advanced through Japan's House of Representatives on Friday after being expedited for plenary debate, according to Kyodo news. This legislation, a top priority for the ruling coalition during the extraordinary Diet session ending December 12, passed due to the majority support within the lower house.
Opposition parties voiced their concerns over the bill's passage, hinting at a complex journey through the Senate, where the coalition lacks a majority. The proposed legislation would reduce the consumption tax from 8% to 1% for food and beverages starting April, accompanied by an income-based cash benefit system for lower-income earners, initially funded by an equivalent of 1% of consumption tax revenue, slated for full implementation in fiscal 2029.
Despite the bill's swift approval by Japan's Financial Affairs Committee, the government's strategy to compensate for the projected loss of funding, approximately 10 trillion yen ($63 billion) in two years, and the structure of the cash benefits program remain uncertain. Earlier, Prime Minister Sanae Takaichi addressed the lower house Financial Affairs Committee, indicating that the ruling parties could potentially incorporate some of the opposition's suggested amendments to the benefits program, paving the way for further discussions in the upper house.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
