Tax Relief on the Horizon: Gasoline Tax Abolition and Economic Support Measures

Japan will abolish the provisional gasoline tax by year-end, reducing fuel costs by approximately 25 yen per liter. Additional support includes free elementary school lunches from April 2026 and rice vouchers.

Key Points

  • Gasoline tax abolished by December 2025, reducing prices approximately 25 yen per liter.
  • Free elementary school lunches targeted for April 2026 implementation nationwide.
  • Rice vouchers proposed to offset high rice prices for registered residents.
  • Gasoline prices will decrease gradually before full tax abolition takes effect.
Foreign residents in Japan can expect relief at the pump and broader economic support measures as the government moves forward with significant policy changes aimed at easing the financial burden on households. The most immediate change involves gasoline prices, while additional support programs for food costs are also under discussion. According to News on Japan, gasoline prices stood at 173.60 yen per liter as of November 6th, representing a modest 0.10 yen increase from the previous week and marking the first rise in four weeks. However, this upward trend is expected to reverse following a major government decision announced on November 5th to abolish the provisional gasoline tax by the end of the year. This tax, which has been in place for decades as a temporary measure repeatedly extended, adds approximately 25.1 yen per liter to fuel costs. For expats living in Japan, particularly those who rely on personal vehicles for commuting or family transportation, this represents meaningful savings. The government has indicated that prices will decrease in stages before the abolition takes full effect, meaning drivers should begin seeing lower prices at the pump within the coming weeks. Those living in rural areas or regions with limited public transportation options stand to benefit most significantly from this measure. The timing of this tax abolition comes as Japan grapples with broader cost-of-living concerns that affect both Japanese citizens and foreign residents alike. While gasoline prices have remained relatively stable in recent weeks, the cumulative impact of energy costs on household budgets has been substantial, making this tax relief particularly welcome. Beyond fuel costs, the government is advancing additional economic support measures that could impact expat families with children. According to NHK, three political parties—the Liberal Democratic Party, Nippon Ishin no Kai (Japan Innovation Party), and Komeito—are working together on implementing free school lunch programs. Their working-level discussions aim to finalize the framework for this program by mid-November, with implementation targeted for elementary schools starting in the next fiscal year, which begins in April 2026. For foreign families with children enrolled in Japanese public elementary schools, this measure could eliminate monthly lunch fees that typically range from 4,000 to 5,000 yen per child. While the program initially focuses on elementary schools, its scope and potential expansion to junior high schools will become clearer once the detailed framework is released later this month. Additionally, the government is exploring support measures to address the rising cost of rice, a staple food in Japan. NHK reports that Agriculture Minister Suzuki has proposed distributing "okome ken" (rice vouchers) as a short-term solution to help households cope with elevated rice prices. Takeshi Yamano, chairman of the Central Union of Agricultural Cooperatives (JA-Zenchu), has expressed support for this approach, calling it an effective measure. Rice prices in Japan have increased significantly due to poor harvests and changing consumption patterns, affecting both Japanese households and expats who rely on rice as a dietary staple. While specific details about the voucher program's eligibility criteria and distribution methods have not yet been announced, foreign residents registered in Japan's resident registry system typically qualify for similar government support programs. These combined measures—gasoline tax abolition, free school lunches, and rice vouchers—represent a coordinated effort to address multiple aspects of household expenses. For expats planning their budgets in Japan, these changes could provide substantial relief across transportation, education, and food costs. As implementation details emerge in the coming weeks, foreign residents should monitor announcements from their local municipal offices regarding eligibility and application procedures for these support programs.