Japan has finalized a tax reform outline that cuts the food consumption tax from
8% to 1% effective next April, the first consumption-tax reduction since the
levy was introduced in 1989. Meiji University economist Kobayashi said the
cabinet’s policy risks increasing the public burden, noting consumption tax is a
long-standing key revenue source for social welfare and that an easy tax cut
could erode fiscal receipts and jeopardize social-security stability.
