The head of a suprapartisan council on social security has presented an interim draft on a proposed cut in the consumption tax rate for food as a measure to help cushion the impact of inflation as well as related measures.
The draft, unveiled Wednesday by Itsunori Onodera, chief of the ruling Liberal Democratic Party¡¯s Research Commission on the Tax System, calls for reducing the tax rate to 1% for food for two years starting April 2027.
In addition, a finely tailored cash benefit program that is linked to income levels and is equivalent to the amount of revenue from a 1% consumption tax rate for food will be introduced in fiscal 2027 in order to effectively reduce the tax rate to zero for food items, according to the draft.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.