Japan proposes cutting food tax from 8% to 1% to ease prices

Japan's government has proposed a sharp reduction in the consumption tax on food and drinks from 8% to 1%, a move expected to cut government revenue by roughly $63 billion over two years. The proposal signals a major policy shift aimed at addressing cost-of-living pressures, though its fiscal implications and legislative prospects remain uncertain. This is a domestic political initiative with potential economic consequences, but no market-moving confirmation yet.