A bill to cut the consumption tax on food passed the Lower House Financial Affairs Committee on Friday, carried by the votes of the ruling bloc against a united opposition.
Under the bill, the 8% consumption tax rate on food falls to 1% for two years from April. The remaining 1% would be paid back to middle- and low-income households as a benefit, making the tax on food effectively zero.
From April 2029, when the cut ends, the government would introduce a full benefit tied to the income of middle- and low-income earners. It has not disclosed the funding, the size of the payments or who would receive them.
Prime Minister Takaichi attended the committee session on Friday morning and took questions before the vote. Lawmakers from the Liberal Democratic Party and Nippon Ishin no Kai voted in favor.
Every opposition party voted against, including Chudo — the Lower House group formed by Komeito and the Democratic Reform Association — plus the Democratic Party for the People, Sanseito and Team Mirai.
The bill goes to a plenary session of the Lower House on Friday afternoon, where the ruling bloc's majority is expected to carry it. Upper House deliberations are due to begin next week.