Japanese Prime Minister Sanae Takaichi will decide this month on cutting the food consumption tax to 1% from 8% by April 2027, a faster alternative to full elimination, Nikkei Asia reported Wednesday, citing a draft ministry document.
On Wednesday, the Ministry of Economy, Trade and Industry will present findings to a government panel regarding how much lead time retailers need to implement the change, with the panel set to issue a report on the reduction shortly thereafter, the news agency said.
Based on surveys of retail groups and regional supermarkets, most businesses can adjust to a 1% tax within six months, the publication said, citing the draft.
In contrast, reducing the rate to zero, as the ruling Liberal Democratic Party promised during February's lower house election, would require cash register upgrades taking "up to around 10 months to one year," along with additional system studies, the report said.
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