Japan's Lower House has approved a bill to cut the consumption tax on food from 8% to 1% for two years. The bill now goes to the Upper House.
Japan’s Lower House passed a bill on Friday, 6 November 2026 to cut the consumption tax on food from 8% to 1% for two years. The cut would start in April 2027 and apply to food and nonalcoholic drinks already subject to the reduced rate.
To offset the 1% rate, income-linked cash payments for low- and middle-income workers would begin in fiscal 2027. A longer-term payment programme is planned for fiscal 2029, when the food tax rate is due to return to the original rate.
Prime Minister Sanae Takaichi told a committee that the government aims to make at least 30% of workers eligible for the payments. She said a Cabinet order would set the income thresholds and other details. The government says it will not use deficit-financing bonds to fund the plan.
All opposition parties voted against the bill. The ruling coalition has a majority in the Lower House but not in the Upper House. If the Upper House rejects the bill, the Lower House can override it with the support of at least two-thirds of members present.
