Prime Minister Sanae Takaichi’s government has formally approved a plan to reduce Japan’s consumption tax on food and nonalcoholic beverages. The proposal would lower the rate from 8% to 1% for a limited period.
The reduction is scheduled to begin in April 2027 and remain in effect for two years. It targets food and nonalcoholic drinks, while the government’s broader tax framework remains subject to the political process.
The approval sets up a difficult parliamentary battle for Takaichi’s administration. Lawmakers will now face debate over the temporary tax cut and its implications for Japan’s consumption-tax policy.
The plan marks a significant proposed change to the rate applied to everyday food purchases, but its implementation will depend on the outcome of parliamentary consideration.
