Japan plans to subsidize small and micro farmers affected by the reduction in food consumption tax, with an estimated requirement of about 200 billion yen.
智通财经2026/10/08 06:36(1) According to Kyodo News, several informed sources revealed that the Japanese government is coordinating to study a plan to provide subsidies equivalent to 5.4% of tax-exclusive sales to small and medium-sized farmers who will face decreased income due to the reduction of the consumption tax rate on food and beverages from 8% to 1% starting April 2027. (2) The aim is to compensate for income loss according to business scale and thus prevent farmers from abandoning agriculture. (3) The policy will cover about 800,000 farmers nationwide, and those working in forestry and fisheries will also receive subsidies. (4) The required funding is expected to be approximately 200 billion yen, which will be included in the initial budget for fiscal year 2027. (5) This will further increase the fiscal burden, adding to the annual 5 trillion yen tax revenue shortfall caused by the consumption tax cut, and will further intensify fiscal pressure.
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