Japan Prime Minister Says Food Tax Cut Needs Budget Reform

Japan's prime minister said funding for a proposed cut in the food consumption tax should be handled through budget reform. The statement addresses how the government would offset lost revenue if the tax rate on food items is lowered.

Background on the Proposal Japan currently applies a reduced consumption tax rate to certain food products. Discussions about further reductions have raised questions about replacing the resulting revenue shortfall. The prime minister's remarks indicate that any change would require corresponding adjustments elsewhere in the national budget.