15:26 JST, October 10, 2026

Since this would be the first rate cut since the introduction of the consumption tax, it is essential to examine the effects, potential side effects and other matters from every angle.

To that end, the government must clearly specify the financial resources and squarely engage in more thorough debates.

The government has approved a bill to cut the consumption tax rate and introduce a cash benefit system at a Cabinet meeting. For two years starting in April 2027, the tax rate on food items will be lowered from 8% to 1%, and benefits equivalent to the revenue from the 1% consumption tax will be provided to low- and middle-income earners.

The reduction in tax revenue for central and local governments resulting from the rate cut will amount to about ¥4.3 trillion annually. Including the benefits, the required financial resources over the two years will total about ¥10 trillion. It is........

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