Japan’s Cabinet approved a temporary reduction in the consumption tax on food and beverages from 8% to 1% for two years from 1 April 2027, subject to National Diet approval.
Japan’s Cabinet on 15 September 2026 approved a temporary cut in the consumption tax on food and beverages from 8% to 1%, effective for two years from 1 April 2027 to 31 March 2029, subject to approval by the National Diet.
The reduced rate will apply to standard food and beverages for human consumption, including takeout and delivery, but excludes alcoholic beverages, restaurant dining and catering services, which remain taxed at 10%.
The measure, valued at around JPY 5 trillion, is Japan’s first consumption tax cut since 1989 and fulfils a pledge by Prime Minister Sanae Takaichi made ahead of February’s national election. The government said it will not issue new bonds to fund the cut, with the financing method to be finalised by year-end.
