TOKYO — On Wednesday, August 5th, 2026, the Japanese cabinet led by Prime Minister Sanae Takaichi approved a bill to reduce the nation's consumption tax on food from the current 8% to 1%. This tax cut is set to take effect starting in April 2027 and will last for two years. The bill is scheduled to be submitted to the Diet for approval, though the government has not yet clarified how it will cover the resulting funding shortfall.
This move aims to ease the financial burden on consumers amid ongoing economic challenges. Further legislative and budgetary steps are expected as the government works to implement the tax reduction.
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