A bill to cut the consumption tax on food passed the Lower House Financial Affairs Committee on a majority vote of the ruling parties. Every opposition party voted against it.
Under the bill, the consumption tax rate on food would drop from 8% to 1% for two years only, starting next April. The remaining 1% would be paid out to middle- and low-income households, making the tax on food "effectively zero."
From April 2029, when the cut ends, the government would introduce in full a benefit tied to income for middle- and low-income households. The government has not disclosed the funding, the size of the benefit or who would receive it.
Prime Minister Takaichi attended the committee session on the morning of November 6 and answered questions before the vote was taken. The Liberal Democratic Party and Nippon Ishin no Kai voted in favor.
The Democratic Party for the People, Sanseito, Team Mirai and Chudo — a Lower House group formed by Komeito and the Democratic Reform Association — all voted against, along with every other opposition party.
A vote is scheduled in the full Lower House on the afternoon of November 6, where the ruling parties hold a majority and the bill is expected to pass. Upper House deliberations are due to begin next week.