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2026-05-25 22:11:45
[Japanese Government Internally Favors 1% Consumption Tax Cut] Reports indicate that regarding the two-year consumption tax cut on food and beverages, the Japanese government internally favors a 1% rate over a zero rate. It is understood that implementing the zero rate promised by the Liberal Democratic Party in the February House of Representatives election would require at least a year to modify retail store point-of-sale (POS) systems. However, with a 1% rate, the modification time could be shortened to about six months. Therefore, the view that it should be prioritized for early implementation as a countermeasure against soaring prices is gaining traction. Prime Minister Sanae Takaichi is expected to make a final decision as early as late June.
