Japan Food Sales Tax Set at 1% Under Takaichi’s Proposal

Japan plans to temporarily cut its sales tax on food and drinks to 1% for two years, Bloomberg reported. The government chose a low positive rate instead of zero to avoid the costly, time-consuming reprogramming of retailers’ cash registers; a 0% rate would take about a year to implement, while 1% could halve that timeline. To take effect in April 2027, the measure must still be legislated and passed by the Diet (parliament), with draft legislation expected in an extraordinary session in autumn 2026. Policymakers hope the measure will ease household burdens, though economists warned that prices may not fall as much as expected, limiting the benefit for consumers.

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