The government is considering creating a new minister in charge of income-linked benefits in line with the food consumption tax cut.

It has been learned that the government is considering creating a new minister in charge of income-linked benefits (support for reducing the burden on workers), which the government is aiming to introduce in conjunction with the consumption tax cut on food products. The support subsidy system, which will be introduced as a permanent system, will involve multiple ministries and agencies, including the Ministry of Internal Affairs and Communications, the Ministry of Finance, and the Ministry of Health, Labor and Welfare, in addition to the municipalities in charge of administering the benefits, so a minister in charge will be appointed to ensure a smooth introduction.

The government will reduce the consumption tax rate on food products from 8% to 1% for two years starting in fiscal 2027, and will also start a subsidy system for middle- and low-income workers. It is a system in which the amount increases or decreases depending on income, and is also related to taxes and the social security system.

The government's general guidelines for the consumption tax reduction, approved by the cabinet on the 15th, clearly state that the Cabinet Office will establish a comprehensive coordination headquarters that will serve as a control tower, and will work with the ministries of general affairs, finance, and health, labor and welfare. In addition to this, by appointing a new minister in charge, this will be promoted as a government-wide effort.

The government will submit a bill regarding the consumption tax cut and subsidies to an extraordinary Diet session scheduled to convene on October 5th. In the cabinet reshuffle on September 17, a new position was created as minister in charge of consumption tax and support subsidy bills, who would be responsible for responding to the Diet. Finance Minister Satsuki Katayama also holds the post.

The new subsidy system will be introduced in advance in fiscal 2027 and 2028 using approximately 600 billion yen, equivalent to 1% consumption tax revenue on food products, and will be expanded in scale and introduced in earnest from fiscal 2029, when the consumption tax cut ends.