Prime Minister Takaichi's cabinet approved a plan to cut the consumption tax on retail food and beverages from 8% to 1% from April for two years, part of an election pledge to ease household cost pressures. The measure is estimated at about 5 tln yen; under the current proposal the government would not issue new debt to finance it and a final funding plan will be decided by year-end. The government plans to submit the bill to an extraordinary Diet session expected next month. The package include

Prime Minister Takaichi's cabinet approved a plan to cut the consumption tax on retail food and beverages from 8% to 1% from April for two years, part of an election pledge to ease household cost pressures. The measure is estimated at about 5 tln yen; under the current proposal the government would not issue new debt to finance it and a final funding plan will be decided by year-end. The government plans to submit the bill to an extraordinary Diet session expected next month. The package includes subsidies for tax-exempt farmers and fishers to offset income losses and support for restaurants to expand takeout; dine-in sales will remain taxed at 10%.