Interim draft on two-year food tax cut presented (opens original article in a new tab)

An interim draft proposes a two-year food tax cut from 10% to 1% starting April 2027, along with a cash benefit program to effectively reduce the tax to zero for low- and middle-income earners, while studying support for affected businesses.

• Interim draft proposes 1% consumption tax rate for food starting April 2027
• Cash benefit program linked to income levels to reduce food tax to zero in 2027
• Study on support measures for eating and drinking establishments affected by tax cut
• Financial resources of ¥600 billion annually secured for benefit program