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Takaichi Advances 8% to 1% Food Tax Cut

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Story summary
  • Prime Minister Sanae Takaichi pushed her food-tax cut pledge into parliamentary debate.
  • The bill would lower the consumption tax on food and non-alcoholic drinks from 8% to 1%.
  • The reduced rate would apply for two years beginning in April 2027 and revert to 8% in April 2029.
  • Income-linked payments for low- and middle-income workers would accompany the tax cut.
  • Opposition parties suggested alternative measures to curb rising prices.