Parties agree on new benefit program but stay divided over consumption tax on food

Japan’s ruling and opposition parties reached an interim agreement Thursday to introduce a new income-linked benefit program in fiscal 2029 to support mid- and low-income workers, while remaining divided over a proposed cut to the consumption tax on food.

The interim agreement was reached at a working-level meeting of the National Council on Social Security, with broader discussions on food tax reduction to begin next week.

“We were able to consolidate the discussions on benefits to the point where we can report them to the full council,” Itsunori Onodera, a senior ruling Liberal Democratic Party lawmaker who chairs the council, told reporters after the meeting.