Dining Out Industry Says 'No Thanks' to Zero Consumption Tax on Food

Economy | February 25, 2026
Japan Taxation Food Industry Economy Consumption Tax Dining Out

Opposition has risen from the dining out industry in Japan against proposals to eliminate the food consumption tax. Leaders within the industry argue that such a measure could lead to adverse economic consequences. The date, location, and specifics of these arguments are not mentioned in the headline, but typically concern issues like portfolio rebalancing, price stability, and the financial health of food businesses.

The food consumption tax is viewed by many as an important source of revenue for the government and a tool for managing inflation in Japan. The move to exempt food from this tax is seen as having potential wide-ranging impacts – while it may lower costs for consumers, it could also result in reduced profit margins for businesses and less government revenue.

In the US and EU, debates around food taxation usually revolve around issues of health (such as taxing processed or fast food) or economic equity (such as reducing taxes on essential food items to help lower-income households). But, as in Japan, stakeholders worry about the economic consequence, though their concerns might focus more on the impacts on consumer behavior and public health.

Information for Your Country

For information on food taxation globally, the OECD's webpage on food, agriculture and fisheries may be helpful. To understand Japan's taxation system more broadly, visit the National Tax Agency Japan's webpage.