A bill to cut the consumption tax rate on food and drink to 1% began Upper House debate on the 11th, with the ruling bloc short of a majority and still unable to say where the money for the cut will come from.
The bill would lower the rate on food and drink from the current 8% to 1% for two years from April 2027, the Mainichi Shimbun reported.
The ruling coalition lacks a majority in the House of Councillors by four seats. It wants to pass the bill with help from parts of the opposition.
The opposition is demanding the funding source and a clear statement of who will qualify for a new benefit program tied to income, to be introduced alongside the cut.
The benefit program
The program, called the employment cost reduction support payment, would start in fiscal 2027 and 2028. It would be funded by the revenue equivalent to one point of the consumption tax rate.
The payment amount would rise in fiscal 2029, when the program would enter full operation.
The government has told the Diet the benefit would cover "more than 30% of working people." The opposition calls that unclear and wants specific income brackets and payment amounts.
Arithmetic in the Upper House
The Japanese Conservative Party, which holds two seats, has signaled support for the bill. The ruling side is also courting independents.
In the Lower House vote on the 6th, four Liberal Democratic Party members left the chamber, including former Prime Minister Shigeru Ishiba. The party is watching for walkouts in the Upper House, where absences could sink the bill.
The bill will go to a special committee at the opposition's request. The LDP took the chair, but the committee has 40 members and the opposition holds 20 excluding the chair, more than the ruling side.
The ruling bloc is looking to Komeito and the Democratic Party for the People to make up the difference.