Overview
- The prime minister said she aims to reduce the 8 percent rate on food and beverages to zero for two years within the fiscal year that begins in April.
- She described the temporary relief as an interim step until a refundable tax credit combining income tax deductions and cash benefits is designed.
- The ruling Liberal Democratic Party made the cut a campaign pledge for the Feb. 8 election, and its coalition partner Japan Innovation Party vowed to pass enabling legislation within fiscal 2026.
- Centrist Reform Alliance co-leader Yoshihiko Noda seeks a permanent zero rate on food, estimates the cost at about 10 trillion yen, and says an autumn start is possible if legislation passes early without deficit-financing bonds.
- Opposition leaders offered competing plans, with the Democratic Party for the People questioning the timetable and proposing broader changes, as Japan’s current consumption tax stands at 8 percent for food and 10 percent for most other items.