Japan cuts food consumption tax to 1% for two years

PSX Update • Aug 6, 2026

Japan's government has cleared a plan to cut the consumption tax on food items from 8% to just 1% for a two-year period starting April 2027, which marks the first reduction in the sales tax since it was introduced in 1989.

August 06, 2026 (MLN): Japan's government has cleared a plan to cut the consumption tax on food items from 8% to just 1% for a two-year period starting April 2027, which marks the first reduction in the sales tax since it was introduced in 1989. Prime Minister Sanae Takaichi's administration is moving to bring new legislation before an extraordinary parliamentary session expected in the fall, under which low- and mi...