Japan is considering a temporary withdrawal of the 8% reduced consumption tax on food for up to two years, with the bill slated for the Autumn 2026 Diet session. The move would cut annual tax revenue by about ¥5 trillion, while the current standard rate remains 10% with an 8% reduced rate for food. The ruling LDP has resisted the cut, citing the tax's importance for funding social security.
In Autumn 2026, for up to two years.
Approximately ¥5 trillion annually.
10%, with an 8% reduced rate for food.
Because it is essential for funding social security costs.
It would cost about ¥5 trillion in lost revenue.
This summary was published on VATfaqs.com on 03 March 2026. It relates to VAT developments in Japan. The original source is VatCalc.
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