Japan proposes its first consumption tax cut since 1989

Exporting food and beverage to Japan?

Japan proposed first consumption tax cut since 1989.

Japan is currently deliberating a landmark bill to temporarily reduce its consumption tax (JCT) on food and beverages from 8% down to 1% for two years, starting April 2027.

The bill aims to ease inflation pressures for middle- and low-income households and would cover groceries bought from supermarkets, non-alcoholic beverages, takeout and delivery food, and school lunches.

Dining out at restaurants and alcoholic beverages remain subject to standard JCT rate.