The ruling Liberal Democratic Party’s General Council unanimously approved Prime Minister Sanae Takaichi’s large-scale food consumption tax cut, clearing the way for cabinet approval later Wednesday; implementation is slated to begin April 2027 after review in a special Diet session. The plan cuts the food consumption tax rate from 8% to 1% over two years and adds a further 1% rebate/subsidy, effectively creating a zero tax burden on food purchases. The measure is expected to create about ¥5 tln

The ruling Liberal Democratic Party’s General Council unanimously approved Prime Minister Sanae Takaichi’s large-scale food consumption tax cut, clearing the way for cabinet approval later Wednesday; implementation is slated to begin April 2027 after review in a special Diet session. The plan cuts the food consumption tax rate from 8% to 1% over two years and adds a further 1% rebate/subsidy, effectively creating a zero tax burden on food purchases. The measure is expected to create about ¥5 tln (~$31.7 bln) in fiscal revenue shortfall, increasing pressure to identify funding sources.