The Japanese government has initiated discussions on a potentially significant tax relief measure that could directly impact household budgets for foreign residents and Japanese citizens alike. Prime Minister Takaichi is leading a new cross-party "National Council" to debate eliminating consumption tax on food products for a two-year period, according to NHK. The National Council held its first meeting on February 26, 2026, bringing together Prime Minister Takaichi and senior members of the ruling party to discuss consumption tax reductions. The proposal to eliminate the consumption tax on food items represents a core campaign promise from the Liberal Democratic Party and has now entered formal deliberation stages. According to NHK, during House of Representatives question time on February 25, Prime Minister Takaichi addressed inquiries from the Democratic Party for the People regarding the implementation timeline for the zero consumption tax policy on food products. The Prime Minister indicated that specific timing and details would be determined through discussions within the cross-party National Council, rather than announcing a firm date immediately. The current consumption tax system in Japan applies a reduced rate of 8% to food and beverage items, while most other goods and services face the standard 10% rate. The proposed measure would temporarily reduce this food tax rate to zero for a two-year period, potentially providing substantial savings for households. For foreign residents managing budgets in Japan, this could mean meaningful reductions in grocery expenses, though the exact implementation date remains undecided. However, the proposal has already encountered opposition from certain sectors. According to Livedoor News, industry associations representing the restaurant and food service sector have expressed opposition to the two-year zero tax rate on food and beverages. While the sources do not detail the specific reasoning behind this opposition, restaurant industry concerns often center on competitive disadvantages between prepared foods and grocery items, as well as implementation complexities. The composition and participation in the National Council itself remains somewhat uncertain. NHK reports that while Team Mirai from the opposition parties has confirmed attendance at the initial meeting, both the Democratic Party for the People and the Centrist Reform Coalition have withheld their responses regarding participation. This suggests ongoing political negotiations about the structure and scope of the discussions. For expats living in Japan, several practical questions remain unanswered. The sources do not clarify whether the zero tax rate would apply only to grocery store purchases or extend to convenience store food items, which currently benefit from the reduced 8% rate when not consumed on premises. The distinction between takeout and dine-in meals, already a point of confusion in the current tax system, could become even more significant if restaurants remain at 8% while grocery items drop to zero. The two-year timeframe suggests this would be a temporary economic stimulus measure rather than a permanent tax reform. Households should be aware that any savings gained during this period would likely disappear once the measure expires, requiring budget adjustments when normal tax rates resume. The proposal comes amid broader discussions about cost-of-living pressures in Japan, where food prices have risen significantly in recent years due to global supply chain issues and yen depreciation. For foreign residents, particularly those supporting families or living on fixed incomes, the potential elimination of consumption tax on groceries could provide welcome relief. As the National Council continues its deliberations, expats should monitor announcements regarding implementation dates and specific coverage details. The political dynamics, including which opposition parties ultimately participate in the discussions, may influence both the timing and final structure of any tax reduction measure that emerges from these negotiations.