Japan's Prime Minister Takichi has decided to reduce the consumption tax on food to 1 percent for a two-year period starting in April, according to a report from Yahoo!ニュース. The prime minister has communicated this policy direction to former Prime Minister Taro Aso and is expected to instruct party executives to begin coordination within the week.
The plan would temporarily lower the current 10 percent consumption tax rate on food items to 1 percent, a significant reduction aimed at easing household financial burdens. Yahoo!ニュース reports that the measure is designed as a limited-time initiative, lasting exactly two years from its April start date.
This decision follows ongoing discussions within Japan's ruling party about how to address rising living costs while maintaining fiscal discipline. The tax cut would apply specifically to food purchases, though the exact scope of eligible items has not been detailed in the report. Prime Minister Takichi has already briefed Aso, a key figure in the Liberal Democratic Party, on the plan's framework.
The move represents a notable shift in Japan's consumption tax policy, which has historically been a politically sensitive issue. Previous governments have raised the tax incrementally, with the current 10 percent rate taking effect in 2019.
Observers will watch for formal announcements from party leadership in the coming days, as well as any legislative steps needed to implement the temporary reduction.
