THE HALFAX HEIMDALL AUGUR

Japan's Food Tax Debate Stalls as Opposition and LDP Rebels Push Back Japan's ruling coalition is struggling to turn its food consumption tax pledge into policy, with opposition parties and LDP members alike raising objections. LDP tax chief Itsunori Onodera speaks at a working-level meeting of the National Council on Social Security held inside the Diet on the afternoon of June 17. (©Sankei/Ataru Haruna) このページを 日本語 で読む A proposal floated by Liberal Democratic Party Research Commission on the Tax System Chairman Itsunori Onodera at a working-level meeting of the National Council on Social Security—to make the consumption tax on food and beverages "effectively zero"—has drawn sharp criticism from opposition parties, casting a shadow over efforts to finalize a mid-month interim report. Onodera presented a plan to temporarily reduce the consumption tax rate to 1% for two years, with funds equivalent to that 1% channeled into cash benefits for low-to middle-income households starting around next autumn. Opposition Pushback Komeito's Motohisa Furukawa demanded: "If this meeting exists just to fulfill the ruling coalition's campaign pledge, then what was all our discussion for?" He also…

Food consumption tax cut plans have parties crunching the numbers The Lower House election in February has taken a surprise turn, as nearly every political party now is calling for a consumption tax cut on food purchased from stores. In a 180-degree about-face, even the Liberal Democratic Party is advocating a temporary consumption tax reduction, although it was against the idea during the Upper House election about six months ago. Discussions so far have made it apparent that proposals by the ruling and opposition parties to eliminate the 8% consumption tax on food fall short in terms of timing, funding and measures to counter negative effects of the plan. In a time of both misinformation and too much information,quality journalism is more crucial than ever.By subscribing, you can help us get the story right. 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 ofyour subscriber account page. Your subscription plan doesn't allow commenting. To learn more see ourFAQ Sponsored contents planned and edited by JT Media Enterprise Division. 広告出稿に関するおといあわせはこちらまで …

Japan Cross-Party Panel Chief Proposes Food Sales Tax Cut to 1% The chairman of Japan’s cross-party policy group proposed cutting the consumption tax on food to 1%, advancing a stalled debate over a key policy idea the ruling Liberal Democratic party touted ahead of a nationwide election in February. Itsunori Onodera , the chairman of the cross-party policy group, said that he proposed reducing the consumption tax rate on food and non-alcoholic beverages, citing a proposal presented to the group on Wednesday. Onodera is head of the LDP’s tax committee. The cut would take effect next April, and some households would be eligible for cash handout from the autumn that would ... Learn more about Bloomberg Tax or Log In to keep reading: See Breaking News in Context From research to software to news, find what you need to stay ahead. Learn more Already a subscriber? Log in to keep reading or access research tools and resources. Log In

Decision on food consumption tax cut may not come in June as planned Image: iStock/Hakase_ politics Decision on food consumption tax cut may not come in June as planned June 27 04:04 pm JST June 27 | 04:04 pm JST 25 Comments TOKYO Japan's ruling party led by Prime Minister Sanae Takaichi is increasingly likely to miss its envisioned end-of-June deadline to reach a decision with other parties on cutting the consumption tax on food and beverages due to outstanding differences, a source close to the matter said Friday. A cross-party council on the issue was supposed to compile by next Tuesday its view on lowering the tax rate from the current 8 percent to 1 percent for two years starting April 2027, but it has become hard due to opposition parties' backlash, the source said. Takaichi, who heads the Liberal Democratic Party, has said she would move ahead with the tax reduction "as soon as possible" once the council presents its view. The opposition parties participating in the council criticized the government's draft, based on the LDP's proposal, for not clarifying how it would make up for the expected 10 trillion yen revenue loss resulting from the tax reduction. In their campaign f…

LDP still considering cutting sales tax to zero for food Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party is continuing to focus on whether to cut the sales tax on food to zero, largely casting aside proposals for a smaller reduction to 1% that would be easier for retailers to implement. “As far as the discussions I just heard, they continue to center on zero” Daishiro Yamagiwa, chair of the LDP’s tax policy subcommittee, told reporters after a meeting on Monday. “There was no talk of 1%.” The ruling party pledged during February’s general election campaign to speed up discussions on suspending the tax on food for two years with a view to going ahead with it. “Many participants stressed the importance of honoring that commitment,” Yamagiwa said. His remarks suggest the ruling party may be more willing to coalesce around a full suspension despite concerns over the time required for retailers to update cash-register and accounting systems. Those concerns have fueled debate within a cross-party policy group, with some participants floating 1% as a more practical alternative that requires fewer changes. Either measure risks reigniting concerns among investors that …

Japan pushing 1% tax, not zero, for food starting next April The Asahi Shimbun Politics article THE ASAHI SHIMBUN June 3, 2026 at 15:27 JST Customers buy food at a store in Ama, Aichi Prefecture. (Asahi Shimbun file photo) Prioritizing speed, the government is moving to lower the consumption tax on groceries to 1 percent—not the promised zero-percent rate—for a two-year period starting next April, officials said June 2. The ruling Liberal Democratic Party had pledged to “accelerate consideration” of a zero-tax policy during the Lower House election in February, and Prime Minister Sanae Takaichi had expressed her ambition to realize it within fiscal 2026. But that promise is being set aside because updating the nation’s cash register systems for such a change would take about a year, the officials said. A national council on social security is currently discussing the matter and aims to compile an interim report this month. According to the officials, hearings held by the council with major system developers revealed that a year of overhauls would be needed to reduce the consumption tax rate on food from the current 8 percent to zero. But a cut to a non-zero rate, like 1…

Japan decision on food consumption tax cut may not come in June as ... A statue is placed on a bench near monitors showing Japan's Nikkei 225 index, hanging in a business building in Tokyo, on June 18, 2026. (AP Photo/Hiro Komae) TOKYO (Kyodo) -- Japan's ruling party led by Prime Minister Sanae Takaichi is increasingly likely to miss its envisioned end-of-June deadline to reach a decision with other parties on cutting the consumption tax on food and beverages due to outstanding differences, a source close to the matter said Friday. A cross-party council on the issue was supposed to compile by next Tuesday its view on lowering the tax rate from the current 8 percent to 1 percent for two years starting April 2027, but it has become hard due to opposition parties' backlash, the source said. Takaichi, who heads the Liberal Democratic Party, has said she would move ahead with the tax reduction "as soon as possible" once the council presents its view. The opposition parties participating in the council criticized the government's draft, based on the LDP's proposal, for not clarifying how it would make up for the expected 10 trillion yen ($62 billion) revenue loss resulting from the tax …

Japan PM Takaichi vows to end consumption tax cut on food after 2 yrs TOKYO (Kyodo) -- Prime Minister Sanae Takaichi on Monday promised to restore the consumption tax rate to its original 8 percent after a planned two-ye

Japan's ruling LDP proposes food consumption tax cut to 1% from April ... A woman shops at a supermarket in Tokyo Image: .iStock/Hakase_ politics Japan's ruling LDP proposes food consumption tax cut to 1% from April 2027 June 18 06:40 am JST June 18 | 04:35 pm JST 43 Comments TOKYO Japan's ruling Liberal Democratic Party on Wednesday proposed reducing the consumption tax rate on food and beverages from the current 8 percent to 1 percent for two years starting April 2027, rather than cutting it to zero as pledged in the last general election campaign. The proposal was made by LDP tax policy chief Itsunori Onodera at a meeting of the cross-party national council on taxation and social security as a draft for an interim report on the issue to be compiled later this month, after monthslong discussions. To make the tax rate effectively zero, the proposal also said cash handouts totaling 600 billion yen ($3.7 billion) per year, equivalent to the expected revenue from 1 percent taxation on food, will begin around fall next year based on income. It remains unclear whether the eight participating parties in the council, including the Democratic Party for the People and Team Mirai, which ar…

Japan's ruling LDP proposes food consumption tax cut to 1% from April ... Retail system changes drive shift from original pledge of temporary zero rate The 1% consumption tax on food and beverages has been proposed because changing the tax rate to zero would require more time to adjust retailers' cash register systems. (Photo by Suzu Takahashi) TOKYO (Kyodo) -- Japan's ruling Liberal Democratic Party on Wednesday proposed reducing the consumption tax rate on food and beverages from the current 8% to 1% starting April 2027, rather than cutting it to zero as pledged in the latest general election campaign. The proposal was made by LDP tax policy chief Itsunori Onodera at a meeting of the cross-party national council on taxation and social security and will be included in an interim report on the issue to be compiled later this month. It remains unclear whether the eight participating parties in the council, including Team Mirai, a group opposed to a consumption tax cut, and other opposition forces, can reach an agreement. Some opposition parties have not been invited to join the council. In its campaign pledge for the House of Representatives election in February, the LDP, led …

Japan's ruling LDP proposes food consumption tax cut to 1% from April 2027 TOKYO (Kyodo) -- Japan's ruling Liberal Democratic Party on Wednesday proposed reducing the consumption tax rate on food and beverages from the curren