The ruling party’s tax and social security committee approved a government proposal to cut the food consumption tax from 8% to 1% from April next year for a two-year period. Cabinet approval is sought early next month and the government aims to table legislation at an autumn extraordinary Diet session; the party’s top decision body may review the draft as soon as Wednesday. From June the plan includes roughly ¥600 billion a year in cash transfers to low- and middle-income households, with paymen

The ruling party’s tax and social security committee approved a government proposal to cut the food consumption tax from 8% to 1% from April next year for a two-year period. Cabinet approval is sought early next month and the government aims to table legislation at an autumn extraordinary Diet session; the party’s top decision body may review the draft as soon as Wednesday. From June the plan includes roughly ¥600 billion a year in cash transfers to low- and middle-income households, with payments scaled by income. Funding remains unspecified; the government plans to rely on non-tax revenue, tax receipts and savings from reviewing tax preferences and subsidies to plug the gap.