Global Daily Tax News, Japan Instead Eyeing One Percent Sales Tax For Food, (Jun 10, 2026)

Japan will reportedly cut value-added tax on food to one percent for two years.

Ahead of elections, the Government had earlier committed to introducing a temporary zero rate on food, down from the current concessionary rate of eight percent.

Citing a government official, the local Mainichi newspaper said the Government is now considering establishing a one percent rate from April 2027. The change in policy is said to be on account of challenges anticipated in administering a zero rate of sales tax in existing cash register systems.