Japan’s Cabinet approved a plan to cut the consumption tax on grocery food from 8 to 1 percent for two years, beginning April 2027, while maintaining the dining-out tax at 10 percent. This would mark Japan’s first consumption tax cut since 1989, fulfilling Prime Minister Takaichi’s campaign pledge. FAS Japan anticipates a modest boost in food demand and a shift toward home dining. FAS Japan will continue to monitor market trends.
Japan to Reduce Consumption Tax on Grocery Food to One Percent