Japan Mulls Benefits for Smaller Farmers

Tokyo, Aug. 26 (Jiji Press)--The Japanese government is considering benefits for small and midsize farmers to offset their income losses linked to a consumption tax cut scheduled for April, officials said Wednesday.

Details will be discussed when the government puts together a fiscal 2027 budget later this year.

Farmers with annual sales of 10 million yen or less make up the majority of agriculture workers in Japan. They are exempt from paying consumption tax, and the consumption tax they receive by selling products becomes part of their income.

Such farmers will see the amount of consumption tax that they receive decrease if the consumption tax rate on food is reduced from the current 8 pct to 1 pct for two years starting in April as planned. Their incomes would also fall because the consumption tax rate for fuel and fertilizers they buy remains at 10 pct.

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