Japanese Prime Minister Sanae Takaichi's cabinet approved a temporary food consumption tax reduction plan, a step towards fulfilling an important election promise to ease the living burden on families caused by high prices. The Cabinet passed this annual tax reform plan, which plans to reduce the consumption tax on food and beverages from 8% to 1% for a period of two years starting in April. The plan involves a tax cut scale of about 5 trillion yen. The government will not raise this amount of funds through additional borrowing, and the decision on the source of the tax reduction funds will be postponed until the end of the year. The Japanese government plans to submit relevant legislation to the provisional Diet session to be held at the beginning of next month.

Japanese Prime Minister Sanae Takaichi's cabinet approved a temporary food consumption tax reduction plan, a step towards fulfilling an important election promise to ease the living burden on families caused by high prices. The Cabinet passed this annual tax reform plan, which plans to reduce the consumption tax on food and beverages from 8% to 1% for a period of two years starting in April. The plan involves a tax cut scale of about 5 trillion yen. The government will not raise this amount of funds through additional borrowing, and the decision on the source of the tax reduction funds will be postponed until the end of the year. The Japanese government plans to submit relevant legislation to the provisional Diet session to be held at the beginning of next month.