Japan Govt Adopts Package including Food Tax Cut

Tokyo, Sept. 15 (Jiji Press)--Japan's government adopted a tax system reform package featuring a temporary consumption tax cut for food and an income-linked benefit program, at an extraordinary cabinet meeting Tuesday.

The consumption tax rate on food will be lowered from the current 8 pct to 1 pct for two years starting next April, while the program to provide low- and middle-income workers with benefits equivalent to the remaining 1 pct tax rate will be in place for the two years on a provisional basis to effectively lower the food consumption tax to zero.

The benefit program will be introduced full scale in April 2029, when the food consumption tax rate is slated to return to 8 pct.

The government aims to submit related legislation to an extraordinary session of parliament expected to be convened early next month. If realized, the consumption tax rate would be lowered for the first time since the levy was introduced in 1989.

The ruling Liberal Democratic Party approved the tax system reform package at a meeting of its Policy Research Council Board on Tuesday morning.

[Copyright The Jiji Press, Ltd.]