Bill to lower consumption tax on food clears Lower House
The measure would take effect in April and pair the tax cut with income-linked cash payments for low- and middle-income workers.
- On Friday, The Lower House passed a bill to cut the consumption tax on food from 8% to 1% for two years, advancing a key measure in Prime Minister Sanae Takaichi's push to ease the cost of living.
- An October Sankei-FNN poll found that 62.6% backed the food tax cut, while 52.2% expected it to do little or nothing to ease the impact of rising prices. This skepticism reflects broader economic concerns Takaichi aims to address.
- The cut takes effect in April next year and applies to food and nonalcoholic drinks already subject to the reduced rate. All opposition parties, including the Democratic Party and Komeito, voted against the bill.
- If rejected in the Upper House, the Lower House can override the bill with support of at least two-thirds of members present. The ruling coalition holds a majority in the Lower House but falls short in the upper chamber.
- Toward year-end, the Cabinet will detail Income-linked payments as Takaichi aims to make at least 30% of workers eligible for the program. Income thresholds and payment calculations will be finalized by Cabinet order.
13 Articles
13 Articles
Takaichi vs. the tax 'rebels'
Japan’s House of Representatives approved the consumption tax cut on Friday, November 6, but the government’s accomplishment was overshadowed by the decision by four senior Liberal Democratic Party lawmakers — most notably former prime minister Shigeru Ishiba — to absent themselves from the vote. The bill now heads to the upper house, where the opposition […]
(Seoul = Yonhap News) Reporter Choi Yi-rak = The Japanese House of Representatives held a plenary session on the 6th and [decided] to temporarily lower the food consumption tax rate to 1% for two years starting in 2027...
On November 6th, the TBS program "N-Sta" reported on the news that the bill to reduce the consumption tax on food products had passed the House of Representatives with a majority vote from the ruling party and others. A supermarket owner, a familiar face on television, criticized the government for the lack of concrete details regarding the funding source...
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