Government submits bill on food consumption tax reduction to parliament

Prime Minister Sanae Takaichi speaks at an Upper House plenary session in Tokyo on Friday. | JIJI

Oct 9, 2026

Prime Minister Sanae Takaichi’s government submitted the food consumption tax reduction bill to parliament Friday, setting the stage for intense discussions next week over its merits and risks to the economy, and whether other measures would be more beneficial.

The government plans to reduce the food and nonalcoholic beverage consumption tax, its signature policy, from 8% to 1% from April before returning it to 8% in 2029 when a new income-linked benefits system is to be introduced.

Next week’s debates will likely see opposition parties pressing the government to offer a clear plan of how it intends to make up lost tax revenue without hurting the larger economy and address concerns about whether it’s the best way to help consumers hit by high prices.

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