Japan consumption tax cut bill on food goes to Lower House - NHKニュース

Japan's Lower House on Tuesday started debating a bill to cut the consumption tax on food amid accelerating inflation.

Prime Minister Takaichi Sanae will attend the session and face questions.

The bill would cut the consumption tax on food products to 1 percent for two years from April 2027. The rate is currently 8 percent.

The legislation also includes support payments to workers based on income levels.

Takaichi stressed the need for the tax cut at an Upper House Budget Committee meeting on Monday.

Takaichi said food and beverage costs have become a particular burden for low income earners amid higher prices. She said the two-year reduction would serve as a bridge until the support payment program is fully introduced.

Opposition parties are expected to question the bill's effectiveness in tackling inflation. They intend to press the government on funding sources and who would qualify for the support payments.

Komeito party's Isa Shinichi expressed concern that it is difficult to go forward without first clarifying who will receive the income-based benefits, how much, and how they will be funded.

The government and ruling parties say the tax cut will provide relief to households as prices continue to rise.