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Published N3 est.4 min read

Japan Plans to Cut Food Consumption Tax to 1% for Two Years Starting April 2027

Japan's government has unveiled a plan to cut the food consumption tax from 8% to 1% — but it's still a draft, not yet law.

Japan Plans to Cut Food Consumption Tax to 1% for Two Years Starting April 2027
  • If passed by the Diet, the food consumption tax would drop from 8% to 1% for two years, from April 1, 2027 to March 31, 2029.
  • Regular newspaper subscriptions would stay at 8%; everything else stays at 10%, unchanged.
  • The government also plans a separate cash benefit for lower-income workers, but the specific amount has not been announced.

The tax may drop to 1% — but it's not law yet

Japan's government has announced a plan to temporarily lower the consumption tax rate on food.

According to the National Tax Agency, if the plan goes through, the food tax rate will drop from 8% to 1% for two years, from April 1, 2027 to March 31, 2029.

What stays the same

Newspaper subscriptions stay at the 8% rate, and everything else remains at 10%, unchanged.

But this change is not law yet. It will only take effect after being deliberated and passed by the Diet.

A subsidy that comes with it

Alongside the tax cut, the government also plans to introduce a cash benefit for workers with lower incomes.

The specific amount and eligibility conditions for this benefit had not been announced as of October 2026.

According to the agency's leaflet, the reason for this temporary cut is the continued rise in prices.

Words in this article

消費税しょうひぜい
consumption tax
引き下げひきさげ
reduction, cut
食料品しょくりょうひん
food and beverages
国会こっかい
the Diet (parliament)
審議しんぎ
deliberation
支援金しえんきん
cash benefit, subsidy
閣議決定かくぎけってい
Cabinet decision

Notes

This article was checked on October 6, 2026.

Since this plan is not finalized, always check the official website for the latest status before relying on this information.

Source: 国税庁 (15 Sept 2026)