As the Upper House opened debate Wednesday on a bill to cut the consumption tax on food, opposition lawmakers pressed Prime Minister Sanae Takaichi on how much shoppers would actually save and who would qualify for income-linked cash payments.
The bill would lower the consumption tax on food and nonalcoholic beverages from 8% to 1% for two years starting in April 2027. Income-linked cash payments for low- and middle-income workers would begin that fiscal year only to offset the 1% and take on an envisaged fuller form of support when the tax rate returns to 8%, with no set end date. The bill leaves the eligible income cutoffs and payment amounts up to a Cabinet order.
The Lower House passed the bill last week, despite opposition objections.
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