TOKYO - The Japanese government has presented estimates showing how long it would take to implement a reduction in Japan's consumption tax on food products, indicating that cutting the rate to either zero percent or 1 percent would require significant preparation time.
The projections were presented during a cross-party meeting attended by representatives from seven ruling and opposition parties, along with government officials, as part of discussions under the National Conference on Social Security and Citizens.
Following additional consultations with businesses, the Ministry of Economy, Trade and Industry said modifications to cash register and payment systems would take up to 10 months to one year if the consumption tax on food were reduced to zero percent. If the rate were lowered to 1 percent, the necessary system changes would take approximately five to six months at most.
Within the government, support has been growing for a 1 percent tax rate as a way to achieve tax relief more quickly. Even so, if legislation establishing a 1 percent rate were passed during an extraordinary Diet session expected in the autumn, implementation would likely not occur until around April 2027.
Akaba, head of the tax panel for the Centrist Party, criticized the discussions, saying: "If this is merely a meeting to let off steam, there is no need to hold it. If the government intends to make the decision itself, it should quickly draft a proposal and present it."
The working-level talks are scheduled to continue next week, with further discussions on the consumption tax. Prime Minister Sanae Takaichi is expected to make the final decision after receiving an interim report to be compiled later in June.
Source: FNN
