FOCUS: Japan's Touchy Consumption Tax Faces First-Ever Cut
Japanese Prime Minister Sanae Takaichi has proposed a temporary reduction in the consumption tax on food items from 8% to 1% to combat rising living costs. This move is historically significant as the tax has never been cut since its 1989 introduction.
Why it matters
The consumption tax is a major political issue in Japan, and this proposal represents a rare attempt to use tax policy to provide immediate relief to households.
Tokyo, Aug. 2 (Jiji Press)--Since its introduction in 1989, Japan's consumption tax has been raised three times and now accounts for about 30 pct of total national tax revenue, making it the nation's largest core tax category.
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