Japan Lower House Considers Bill to Temporarily Reduce Consumption Tax on Food, Beverages, Introduce Credits

The Japanese lower house of parliament (Shugiin) Nov. 4 accepted for consideration Bill No. 1, to temporarily reduce the consumption tax rate on food and beverages, and to introduce tax credits. The bill includes measures to: 1) temporarily zero rate, from Oct. 1, 2026, through Sept. 30, 2027, the consumption tax rate on food and beverages, as defined; 2) authorize the government to extend the sunset date for the zero percent rate to Sept. 30, 2028, based on economic indicators; and 3) direct the government to develop a related mechanism of tax credits with benefits, with necessary legislation. The law ...