Japan's Tax Relief: A Bold Move to Ease Household Strain

Japanese Prime Minister Sanae Takaichi announces a two-year suspension of the 8% food levy to alleviate the financial burden on households affected by rising living costs. This initiative marks a shift in Japan's fiscal policies, aiming for increased investment and economic revitalization.

In a significant policy shift, Japanese Prime Minister Sanae Takaichi declared on Monday that her government will temporarily abolish the 8% tax on food sales. This two-year suspension is intended to assist households struggling with mounting living expenses.

Addressing the media, she emphasized, "We will overhaul past economic and fiscal policies. My administration is set to terminate excessively stringent fiscal measures and address the lack of future investments."

Currently, Japan imposes an 8% consumption tax on food items and a 10% tax on other goods and services, which are essential for financing the rising social welfare costs of its ageing population. This recent development aims to provide economic relief and support to the citizens.

(With inputs from agencies.)