Japanese Prime Minister Sanae Takaichi announced plans to reduce the consumption tax on food and beverages from 8% to 1% for two years starting April 2027. The government will proceed despite a cross-party panel failing to reach consensus on funding and permanence. Cash subsidies for eligible households, costing about 600 billion yen annually, will begin as early as autumn 2027. The 1% rate was chosen over 0% to ease the burden on retailers reprogramming cash registers.