TOKYO, 31st July, 2026 (WAM) -- Sanae Takaichi, Prime Minister of Japan, 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.
According to Kyodo News, 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.