TOKYO –
A government bill to reduce Japan’s consumption tax on food from 8% to 1% for two years starting in April 2027 was approved by the House of Representatives Committee on Financial Affairs on November 6, with the ruling Liberal Democratic Party and Japan Innovation Party securing a majority in favor of the legislation.
The bill would temporarily lower the consumption tax on food to 1% while providing additional financial assistance to low- and middle-income households to offset the remaining tax burden. The assistance would take the form of payments linked to household income, effectively compensating eligible households for the remaining 1% tax.
Opposition parties have questioned the effectiveness of the proposed tax reduction, how the government intends to finance it, and the lack of detailed explanations regarding the planned financial assistance.
Prime Minister Sanae Takaichi attended the committee session on November 6, where opposition lawmakers pressed her to clarify the government’s position on these issues.
Following deliberations, the committee approved the legislation by a majority vote from the LDP and Japan Innovation Party. Opposition parties, including the Democratic Party for the People, Komeito, and Sanseito, voted against the bill.
The legislation is expected to be submitted urgently to a plenary session of the House of Representatives on the afternoon of November 6, where it is likely to pass with the support of the ruling parties before proceeding to the House of Councillors for further deliberation.
Source: TBS
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