Japan's ruling coalition partner to propose sales tax cut on food

4/6/2025 12:43

Japan's junior ruling coalition partner, Komeito, will propose cutting the consumption tax rate for food items to 5% from 8% in a campaign pledge for the upper house election slated in July.



The Yomiuri newspaper said, the campaign pledge, to be announced on Friday, will also include a proposal to offer cash payouts to cushion the blow to households from rising living costs.



A Komeito official confirmed the report, telling Reuters the tax cut idea will be among proposals in the campaign pledge due on Friday. The official spoke on condition of anonymity as he was not authorised to speak publicly.



According to the draft obtained by Yomiuri, the proposed stimulus plan will be funded by an expected increase in tax revenues instead of additional debt issuance.