Japan's Cabinet approves 2-year consumption tax cut on food and beverages to 1%

Cabinet approved a plan to reduce consumption tax on food and beverages from 8% to 1% for two years starting next April. The measure aims to provide inflation relief, with cash handouts for low- and middle-income earners. The government plans to fund the 10 trillion yen revenue loss through budgetary reforms without issuing deficit-covering bonds.