- PM Sanae Takaichi said Japan will restore the food consumption tax to 8% two years after a planned temporary cut.
- The ruling LDP now proposes reducing the tax on food and beverages to 1% for two years starting in April 2027, instead of zero.
- The move is meant to ease inflation pressure, but officials are worried it could worsen Japan’s already weak fiscal health.
- Takaichi said the cut would be implemented as soon as possible after an interim report from the national tax council.
- The LDP also suggested annual cash handouts of 600 billion yen to effectively offset the tax on food.
Source: english.kyodonews.net
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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