Prime Minister Takaichi Says Food Tax Cut Will Last Two Years Then Return to 8%

Prime Minister Sanae Takaichi said Monday that the consumption tax on food products and beverages would be cut for two years. Speaking at a Lower House budget committee session, Takaichi told lawmakers the reduction would be restored after the period ends. “I want to make this clear.

Two years after implementation, it will be restored,” she said. Takaichi described the cut as only “a bridge” until a refundable tax credit program is put in place. “After the two-year cut ends, we envision bringing the tax back to the current reduced rate of 8% (for food and beverages),” she said.

She added that the ability to adjust the consumption tax rate in the event of large-scale natural disasters or infectious-disease outbreaks remains an important policy consideration.