Japan Plans a 1% Consumption Tax on Food in 2027: What Residents Should Know
When I shop for groceries in Japan, I’m used to seeing different tax rates on my receipt. Most everyday purchases are taxed at 10%, while many food and non-alcoholic drinks are currently covered by the reduced 8% consumption tax rate. So when I first heard that Japan plans to cut the tax on food to 1%, my immediate reaction was: Does that mean almost everything in my supermarket basket will be taxed at just 1%? Not quite. Japan’s Cabinet approved a basic policy on August 5, 2026, that calls for the reduced consumption tax rate on eligible food and beverages to fall from 8% to 1% for two years starting April 1, 2027 . The important words here are “eligible food.” Alcohol and restaurant dining are not currently part of the reduced-rate category, so the headline “1% food tax” is much broader than the actual plan. There is another point worth keeping in mind. The Cabinet has approved the basic policy, but residents should still check the final rules and implementation details as April 2027...