Japan’s Diet Begins Debate on Food Tax Cut and Income-Linked Benefit Bills on October 20
The Japan food consumption tax cut will go before parliament on Tuesday, October 20, 2026, when the lower house begins debating a plan to cut the tax on food from 8% to 1% for two years and create a cash benefit program tied to income. Prime Minister Sanae Takaichi will attend the opening session of the House of Representatives, according to Jiji Press. The ruling coalition wants the bills through the lower house by early November, and the cut would be Japan’s first reduction in the consumption tax since it was introduced in 1989.
What the Japan Food Consumption Tax Cut Would Change
Japan’s standard consumption tax rate has been 10% since October 2019, while most food and non-alcoholic drinks carry a reduced rate of 8%. Alcohol and dining out are taxed at 10%. Under the bill, approve...