The Japanese government decides to reduce the food consumption tax rate to 1% for two years from April next year.

Applies for 2 years from April next year... Parallel support measures for farmers, fishermen and restaurants

(Tokyo = Yonhap News) Correspondent Lee Do-yeon = Japan's Takaichi government decided at the Cabinet meeting on the 15th to lower the food consumption tax rate to 1% for two years from April next year.

According to NHK, etc., the Japanese government held a temporary cabinet meeting this afternoon and decided on the outline of the design of the food consumption tax reduction system.

The outline lowers the tax rate from the current 8% to 1% for two years from April next year, and at the same time specifies that this is a temporary reduction due to rising prices.

It also included provisions to secure financial resources through review of expenditures and revenues, etc., rather than relying on deficit government bonds, in order to gain market trust.

In addition, it was decided to introduce a system to pay an amount reflecting individual sales to agricultural, forestry and fishery workers affected by this tax cut, and to support business diversification such as takeout for restaurant operators.

In preparation for a situation where stores are unable to quickly change price tags due to a change in the consumption tax rate, it has been decided to grant a special exception and postpone the 'display of the total amount including tax', which is currently required by law, for two months before and after the tax rate change.

In addition, a customized support system tailored to income level, ‘Support to Reduce Employee Burden,’ will be introduced.

The Japanese government plans to draft a formal bill based on this outline and submit it to the extraordinary National Assembly to be convened early next month.

The plan is to pass the bill with the support of as many political parties as possible.