Prime Minister Takashi Takachi said he intends to submit a bill to reduce consumption taxes on food items during the autumn Diet session.

The move represents a shift toward what the administration calls "responsible active fiscal policy" to ease the financial burden on Japanese households. By targeting food costs, the government aims to provide immediate relief to consumers facing rising living expenses.

Takachi said the government is currently in the stage of seeking a conclusion through discussions at a national conference. He said that if a conclusion is reached this summer, he wants to submit an amendment to the tax law as early as possible in the next Diet session.

Government and ruling party officials are considering a tax reduction centered on a 1% decrease [1], which would potentially take effect on April 1, 2027 [1]. However, some discussions have also explored the possibility of implementing a zero-percent consumption tax on food [1].

To refine the system, government ministers are accelerating the design of the tax cuts through a cross-party national conference. This includes evaluating the introduction of a "refundable tax credit," which combines tax reductions, and direct benefit payments.

Data highlighting the impact on consumers shows that the annual food consumption tax for a family of four is approximately 54,000 yen [2]. This figure is based on a survey of 2,176 users nationwide conducted by Reci-Challe [3].

Representative Ogawa of the center-right bloc questioned whether the tax on food would be reduced to zero or one percent, and confirmed the timeline for the autumn bill submission. Takachi said that the specific details remain under deliberation within the national conference.

“I want to submit an amendment to the tax law as early as possible in the next Diet session.”

This proposal signals a departure from previous fiscal conservatism in Japan, prioritizing immediate consumer relief over strict deficit control. The focus on a 'refundable tax credit' suggests the government is seeking a targeted mechanism to support low-income households without completely eroding the consumption tax base, though the final rate—whether 1% or 0%—will determine the actual economic impact on inflation and household spending.