Prime Minister Takaichi said she will restore the food consumption tax to 8%
after two years to preserve market trust and fiscal sustainability. The cabinet
on Wednesday approved a plan to temporarily cut the consumption tax on food and
non‑alcoholic beverages from 8% to 1%, effective April next year, as a
transition until a new tax‑credit system due in 2029. The government has not
specified how it will cover an estimated annual revenue shortfall of more than 4
tln yen, leaving funding and fiscal risk as market concerns.
