Japan to cut consumption tax on food to 1% from April 2027: PM

TOKYO - Prime Minister Sanae Takaichi said Thursday that Japan will cut the consumption tax rate on food and beverages to 1 percent from the current 8 percent for two years starting next April, marking the first reduction since the system was introduced in 1989.

The tax cut will be coupled with cash handouts to low- and middle-income earners to "effectively reduce the tax burden to zero," which is "the best option" to support households struggling with higher prices, Takaichi told a press briefing at her office.