Japan Considers 2-Year Suspension of 8% Food Consumption Tax Amid Cost-of-Living Crisis

• Japan’s Prime Minister is considering suspending the 8% reduced consumption tax on food for up to two years.
• The suspension is proposed as an election pledge to address the cost-of-living crisis.
• The measure would exempt food and beverages from consumption tax temporarily.
• The government estimates this would reduce annual tax revenues by about ¥5 trillion.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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