This is a translation of the Japanese original. The Japanese version and the official Japanese government materials are authoritative.
The government's bill to cut the consumption tax on food to 1% for two years enters debate in the House of Representatives on 20 October. In response, Komeito has proposed "a payment of about ¥80,000 per person over two years", the Democratic Party for the People (DPFP) "about ¥50,000 a year in burden relief per working person", and the Constitutional Democratic Party (CDP) "a payment within this fiscal year to households exempt from residential tax" as counter-proposals[Komei Shimbun, 16 Oct 2026, in Japanese].
Which plan delivers the most to your household depends on whether you work, whether your income is above roughly ¥3.75 million, and whether you have children. We compare two years' worth for four households on the same yardstick. We do not judge which plan is better.
In short: what four households would receive over two years
| Household | Government plan (tax cut + payment) | Komeito plan (flat payment) | DPFP plan (residential tax cut + payment) |
|---|---|---|---|
| A Single employee, income ¥2.5 million | about ¥132,000 | about ¥80,000 | about ¥100,000 |
| B Single employee, income ¥6 million | about ¥72,000 | about ¥80,000 | about ¥100,000 |
| C Dual-income couple, 2 children, household income ¥3.75 million | about ¥408,000 | about ¥320,000 | about ¥200,000 |
| D Couple living on pensions only | about ¥144,000 | about ¥160,000 | ¥0 |
*Rough estimates for the two years from April 2027 to March 2029. For the government plan, the tax cut is assumed at ¥36,000 per person a year (the prime minister's Diet answer) and the payment at ¥30,000 a year per eligible person (the average the government presented). The Komeito plan is ¥80,000 per person over two years. The DPFP plan is ¥50,000 a year per working person (the "maximum" in the party's outline). Separate payments the parties say they would make within this fiscal year are not included. The CDP plan is not in the table because its amount has not been set.
The government plan gives the most to households that work and whose income is below the payment's income line (A and C). A single person whose income is above the line (B) gets the most from the DPFP plan, and a household that does not work (D) gets the most from the Komeito plan.
What the four plans contain: who, when, how much
| Plan | Who | When | How much |
|---|---|---|---|
| Government plan | Tax cut: everyone who shops. Payment: working people on low and middle incomes (reference figure of about 20 million) | April 2027 to March 2029. Payment every year from FY2027 | Tax cut about ¥36,000 per person a year. Payment about ¥30,000 a year on average (reference figure) |
| Komeito plan | Every resident, the same amount each | Timing not stated in the proposal (described as "delivered quickly and reliably") | About ¥80,000 per person over two years |
| DPFP plan | Working people. Those who pay residential tax get a tax cut; those who cannot use it all get a payment | Payment in FY2027, residential tax cut from FY2028 | Up to about ¥50,000 per person a year |
| CDP plan | First, households exempt from residential tax. From April 2027, up to the middle class | Payment within FY2026, income-linked payment from April 2027 | Not set |
*Government plan: outline of the bill and the prime minister's answers[Cabinet Secretariat and Ministry of Finance, outline of the bill (PDF, in Japanese)]. Komeito plan: Komei Shimbun (16 October). DPFP plan: Jiji Press (15 October) and NHK (16 October). CDP plan: the party's press conference[CDP, 7 Oct 2026, in Japanese].
Komeito's ¥80,000 is the roughly ¥10 trillion the government plan spends over two years divided by the population[Nippon TV, 16 Oct 2026, in Japanese]. In other words, the government and Komeito plans are two ways of distributing the same ¥10 trillion. The government plan gives more to people who spend more on food and to working people eligible for the payment. The Komeito plan gives everyone the same amount.
The DPFP plan raises the residential tax exemption line from ¥1.17 million to ¥1.78 million, reducing the burden on each working person by about ¥50,000 a year[Jiji, 15 Oct 2026, in Japanese]. People who do not work are not covered. Whether there will be an income cap has not been announced at the outline stage.
In addition, the DPFP proposes a payment of about ¥50,000 within this fiscal year to working people on low and middle incomes, and the CDP a payment within this fiscal year to households exempt from residential tax (amount not set). These are not included in the comparison table above.
Household by household: where the differences arise
A Single, income ¥2.5 million: depends on eligibility for the payment
Under the government plan, the tax cut of ¥36,000 × 2 years = ¥72,000 plus the average payment of ¥30,000 × 2 years = ¥60,000 comes to about ¥132,000. For the payment's income cap, there is the ¥3.75 million the finance minister gave as a guide and a plan of around ¥3 million reported in September; ¥2.5 million falls inside either way. The DPFP plan gives ¥50,000 × 2 years = ¥100,000, and the Komeito plan ¥80,000.
B Single, income ¥6 million: outside the payment
The government plan gives only the ¥72,000 tax cut. Under the DPFP plan, as a working person who pays residential tax, this person gets ¥100,000. That would change, however, if an income cap were added later. The Komeito plan gives ¥80,000 regardless of income.
C Dual-income couple, 2 children, household income ¥3.75 million: head count and the payment matter
The government plan's tax cut for four people is ¥36,000 × 4 people × 2 years = ¥288,000. Each spouse earns about ¥1.88 million and is likely to be eligible for the payment, adding the average ¥30,000 × 2 people × 2 years = ¥120,000. The total is about ¥408,000, and an addition based on the number of children under 16 comes on top. The Komeito plan gives ¥80,000 × 4 people = ¥320,000. The DPFP plan covers the two working adults, ¥50,000 × 2 people × 2 years = ¥200,000, with nothing for the children.
D Couple living on pensions only: if you do not work, neither the payment nor the DPFP plan reaches you
The government plan gives only the tax cut, ¥36,000 × 2 people × 2 years = ¥144,000. The payment excludes people whose only income is a pension. The DPFP plan also targets working people, so it gives ¥0. The Komeito plan gives ¥80,000 × 2 people = ¥160,000. Under the CDP plan, a household exempt from residential tax would be eligible for the within-year payment, but the amount has not been decided. Why people living only on pensions are excluded from the payment is set out in seven types of people excluded.
The government plan's ¥36,000 is a per-person average. Households that spend more on food get more back from the tax cut, and those that spend less get less. The payment's ¥30,000 is also an average presented by the government and goes up or down with income and the number of children. How the amount is set is examined in detail in the new benefit's ¥30,000 average and the ¥3.75 million line.
Differences beyond the amount: speed, administration, and 2029
| Issue | Government plan | Komeito plan | DPFP plan |
|---|---|---|---|
| When households receive it | From April 2027 | Not set (the party describes it as "fast") | Payment in FY2027, plus a separate payment within this fiscal year |
| Burden on businesses | Cash register changes, changes to reduced-rate bookkeeping | None (payment administration by municipalities) | Residential tax system changes and payment administration |
| Treatment of high earners | More for those who spend more on food | Same amount for everyone | Income cap not announced |
| From April 2029 | Food returns to 8%. The payment is to continue on a larger scale | Ends with the two-year payment | Residential tax cut from FY2028. Duration not stated in the outline |
Under the government plan, the consumption tax on food returns to 8% in April 2029. People not eligible for the payment get no relief after it goes back up. This is followed in the payment when the rate returns to 8% in 2029. An overview of each party's approach to tax is in comparison of parties' tax stances.
Which plan is adopted, and whether it is amended, will be decided in Diet debate. We will update the tables in this article once the outcome is known.
Summary
- The government plan combines a 1% consumption tax on food (about ¥36,000 per person a year) with a payment to working people (about ¥30,000 a year on average, a reference figure)
- The Komeito plan divides the same roughly ¥10 trillion by head count and pays a flat amount of about ¥80,000 per person over two years
- The DPFP plan raises the residential tax exemption line to ¥1.78 million, giving each working person up to about ¥50,000 a year. People who do not work are not covered
- Working households below the payment's income line get the most from the government plan, single people above the line from the DPFP plan, and non-working households from the Komeito plan
- The CDP plan starts with a within-year payment to households exempt from residential tax, but the amount is not set. The bill enters debate on 20 October
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Sources
- Cabinet Secretariat and Ministry of Finance, on the bill for the temporary cut in the consumption tax rate on food and drink and the Worker Burden Relief Payment, to reduce the burden of taxes and social insurance premiums (PDF, in Japanese) (October 2026)
- Komei Shimbun, "Inflation measures: carry out 'payments'", 16 Oct 2026 (in Japanese) (proposal of about ¥80,000 per person over two years)
- Nippon TV, "Komeito: 'flat payment of about ¥80,000'; DPFP: '¥50,000 burden relief'", 16 Oct 2026 (in Japanese)
- Jiji Press, "Tax cut counter-proposal: ¥50,000 burden relief, DPFP draft", 15 Oct 2026 (in Japanese) (residential tax exemption line ¥1.17 million to ¥1.78 million)
- NHK, "DPFP counter-proposal on consumption tax cut: burden relief through higher residential tax deduction and payments", 16 Oct 2026 (in Japanese)
- CDP, "Generous payments for low and middle earners: counter-proposal to the government's consumption tax cut and payment", 7 Oct 2026 (in Japanese)
- Jiji Press, "New payment debated 'blank'; recipients and amounts depend on funding", 10 Oct 2026 (in Japanese) (the prime minister's ¥36,000 per person tax cut remark)
This article is general information based on the bill and the parties' announcements and reports as of 18 October 2026. The parties' plans are at the outline or proposal stage, and amounts and eligibility may change. It does not indicate support for or opposition to any political party. For individual decisions consult your municipality, tax office or a tax professional.