Japan Cabinet OKs Bill for 1st Consumption Tax Cut in Step Toward Diet Passage
The plan is the first food tax cut since 1989 and includes annual cash payments for lower earners, officials said.
4 Articles
4 Articles
Proposed tax cut on food, drinks from 8% to 1% expected to reduce revenue by around $63B over 2 years
Japan Cabinet OKs bill for 1st consumption tax cut in step toward Diet passage
Japan's Cabinet on Friday approved a bill to temporarily cut the consumption tax on food and drink and implement an income-linked cash benefit system for lower earners, with an eye to securing its passage during the current Diet session.
The government has approved a bill to reduce the consumption tax on food products and submitted it to the Diet. The bill's main component is to lower the consumption tax rate on food products from 8% to 1% for two years starting in April 2027. It also includes the creation of a "support payment to reduce the burden on workers" to cover the remaining 1%, and the full-scale introduction of income-linked payments from fiscal year 2029.
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
