Japanese Prime Minister Sanae Takaichi stated on Monday that a plan to address the cost of living crisis will be advanced, reducing the consumption tax on food from 8% to zero for a period of two years.
Takaichi indicated that the government will engage with opposition parties willing to cooperate to establish a cross-party national committee, aiming to compile a temporary report before summer that outlines the basic framework for the tax rate reduction. She added that the two-year suspension measures will be funded through a review of subsidies and special tax measures, as well as utilizing non-tax revenue, describing this move as a "temporary bridge" until the introduction of a refundable tax credit system aimed at alleviating the burden on low- and middle-income earners