Japan Press Weekly

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2026 October 28 - November 3 TOP3 [POLITICS]

Gov’t does not care about impact on household budgets of sales tax on food rising to 8% after 2-year reduction period

The government, in response to a written question submitted by the Japanese Communist Party refused to show the possible consequences of raising the consumption tax on food from 1% to 8% on household budgets. This highlights the government’s reluctance to take responsibility for the impact of the 2-year tax reduction on household finances.

The government-sponsored bill sets the consumption tax rate on food at 1% starting in fiscal 2027. The rate will then return to 8% in fiscal 2029.

The JCP asked if the government is evaluating the potential negative impact on household budgets after the 2-year period ends. The government nonsensically responded that reverting the tax rate to its original level does not constitute an increased burden.

The JCP also asked why the consumption tax on food items will be set at 1% for only a limited 2-year period. The government’s written response merely stated that the consumption tax is a valuable source of funding for social welfare programs.

The party inquired about the cash benefits system called for in the bill. The government, however, did not address this issue. The government also failed to present any support measures for farmers and restaurant owners who could be affected by the tax cut on food.

Past related article:
> JCP submits written question to gov’t on bill for 2-year consumption tax cut to 1% only on food [October 16, 2026]