According to recent reports, Japan's ruling party is considering a reduced consumption tax rate for certain essentials, including foodstuffs. The reduced rate would be 5% to 8%, and would apply when the current standard rate of 8% is increased to 10% on 1 April 2017. The main purpose of a reduced rate is to lessen the likely negative economic impact the 2017 rate increase will have.
A zero-rate for foodstuffs had been considered following the increase of the standard rate from 5% to 8% on 1…