Japan Leans Toward Cutting Food Tax to 1%, Kyodo Says (May 25)

The Japanese government is leaning toward a 2-year consumption tax cut on food and beverages to 1% rather than zero, Kyodo reported on Monday, without attribution.

• Prime Minister Sanae Takaichi to make final decision as soon as late-June
• Cutting consumption tax to 1% would halve the time required to make necessary changes to checkout systems compared to the ruling party’s pledge to consider cutting it to zero
• Related Story: Japan’s Takaichi Vows Sustainable Finance, Faster Tax Cut Talks

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