Japan debates zero consumption tax on food amid election push |
| Ahead of Japan’s February Lower House election, nearly all political parties are proposing a temporary or permanent cut to the 8% consumption tax on food purchased outside restaurants. The ruling Liberal Democratic Party, which previously opposed the idea, is now considering the cut, though details remain vague. Concerns have been raised about potential harm to restaurants, which would still be subject to a 10% tax, and the administrative burden on small businesses. The move could cost ¥5tn ($33bn) annually, with Prime Minister Sanae Takaichi ruling out new bonds to cover the shortfall. Opposition parties have suggested various funding mechanisms, including using investment returns from a new government fund. |
|
