Japan Cabinet OKs bill for 1st consumption tax cut in step toward Diet passage

Contributing sentiments towards policy:

57% : The following month, the government gave the green light to a tax reform package, which became the basis for the legislation.
54% : There is also concern that the latest tax-cut plan could affect local government finances, as part of the consumption tax collected by the central government is distributed to municipalities.
54% : Takaichi's Liberal Democratic Party scored a landslide victory in February's House of Representatives election on a policy platform that included a pledge to consider slashing the consumption tax rate on food and beverages to "zero" for two years.
53% : TOKYO - Japan's Cabinet on Friday approved a bill to temporarily cut the consumption tax on food and drink and implement an income-linked cash benefit system for lower earners, with an eye to securing its passage during the current Diet session.
50% : The ruling bloc later decided on the 1-percent plan after learning that modifying retailers' cash register systems to accommodate a zero tax rate would take more time, during discussions held by a cross-party "national council" on taxation and social security.
49% : The Cabinet approved the plan for a consumption tax cut in August.
48% : She also said that the planned reduction in the consumption tax rate "will be reflected in prices, in principle," while adding that it is difficult to make a definitive projection as prices are influenced by "a wide range of factors.
45% : The consumption tax on food and drink products would be reduced from 8 percent to 1 percent for two years from April, while there would be annual payments for low- to middle-income earners.
44% : It would be the first cut since the consumption tax was introduced in 1989.
42% : While Prime Minister Sanae Takaichi has said that the measures are the best way to speedily help a public facing inflationary pressures, about 10 trillion yen ($63 billion) is expected to be lost in tax revenues over two years.
41% : Since 2019, the standard consumption tax rate has been 10 percent, with a reduced 8 percent rate for food and beverages, excluding alcoholic drinks and dining out.

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