Japan's food consumption‑tax cut plan stalls as parties disagree

Senior politicians met in the cross‑party “National Conference” to discuss lowering Japan’s consumption tax on food. The governing parties proposed reducing the rate from 10 % to 1 % beginning April 2027 for a two‑year period, after which it would rise back to 8 % with targeted cash benefits for low‑income households. Opposition parties rejected the plan, arguing that a temporary cut would hurt fiscal stability and that a permanent reduction or direct payments would be preferable. No agreement was reached, and the debate was reopened on July 22. The government has set a deadline of early August for a final policy decision, pending approval by the temporary Diet session. Prime Minister Takashi Takahashi’s explanation to the public is expected to be decisive for the proposal’s fate.