Japan Submits Bill to Cut Consumption Tax on Food and Beverages

TOKYO (Kyodo) — On August 8, Japan's Cabinet approved an interim bill to cut the consumption tax on food and beverages, alongside the rollout of an income-linked cash assistance program for low-income earners.

Under the bill, the current consumption tax rate on food and beverages would be lowered for a set period. At the same time, the government will introduce a cash support mechanism for low-income recipients, with the payout amount depending on each household's income level.

The Cabinet's approval of the bill is seen as a key step toward securing its passage in the Diet during the ongoing session. The Japanese government hopes these measures will help ease the spending burden on the public, especially low-income households, amid persistently high living costs.

The bill will now be submitted to the Diet for debate and review before any final decision is made.