The Prime Minister has recently proposed a complete elimination of consumption tax on foodstuffs, aiming to finalize this policy change before summer. This strategy is part of a broader plan to foster economic growth and support households through reducing the cost of living. Details on how the government will cover the financial loss due to the tax reduction are yet to be specified.
In Japan, the consumption tax affects a multitude of daily commodities, including food. As such, the proposed tax cut is likely to be a hot button issue for public opinion. Many citizens will generally welcome the reduction as it comes as a direct relief to household finances, while critics might point at potential economic risks such as deficit financing.
Unlike Japan, the U.S. and most EU countries have multiple levels of sales tax, and items like foodstuffs are often taxed differently by different states or regions. Therefore, scrapping a tax entirely on a national level is rarely seen. However, tax resolutions to alleviate household burdens are common.