Prime Minister Sanae Takaichi said Monday that any cut in the consumption tax on food products and beverages would last only two years.
“I want to make this clear. Two years after implementation, it will be restored,” Takaichi told the budget committee of the House of Representatives.
Asked whether the cut would expire after two years even if the economy worsened or inflation persisted, Takaichi said the measure is only “a bridge” until a refundable tax credit program is put in place.
“After the two-year cut ends, we envision bringing the tax back to the current reduced rate of 8% (for food and beverages),” she said.
“The ability to adjust the consumption tax rate if something such as large-scale natural disasters or infectious-disease outbreaks happens is an important policy consideration for me,” Takaichi said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.