Food Consumption Tax Cut to 1% From Next April to Be Proposed

Jun 24, 2026 | News On Japan

TOKYO - A cross-party national council discussing a reduction in the consumption tax on food will present a draft proposal on June 24 calling for the rate to be lowered to 1% from April next year.

A working group set up under the nonpartisan council will meet on June 24 to discuss a draft interim report ahead of a deadline at the end of June.

At a meeting last week, Itsunori Onodera, chair of the Liberal Democratic Party’s tax system research commission and head of the working group, presented a chairman’s proposal to lower the consumption tax on food to 1% for two years starting next April.

The draft report is expected to be based on Onodera’s proposal while also referring to arguments made by opposition parties. According to people familiar with the matter, it will also include the need to respond to the impact of the tax cut on the restaurant industry and farmers.

The council will begin discussions this week to consolidate views, but coordination with opposition parties is expected to be difficult.

Source: TBS

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