Japan's Cabinet approves consumption tax cut on food and drink
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Japanese Cabinet, Prime Minister Sanae Takaichi
Japan
October 9, 2026
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Read our editorial policy- Earlier version 110/9/2026, 10:01:14 AM
The Cabinet approved a bill to reduce the consumption tax on food and drink from 8% to 1% for two years starting in April. The plan includes income-linked cash benefits for lower earners. The government aims to pass the legislation during the current extraordinary Diet session ending Dec. 12. The estimated revenue loss is 10 trillion yen over two years, with funding sources yet to be finalized.
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