Japan Prepares for Consumption Tax Cut

The Japanese government has allocated 111.8 billion yen (approximately $710 million) to help local governments and businesses prepare for a consumption tax cut.

The Cabinet approved the spending from contingency funds, which will be used to modify cash register systems, with most of the money ($500 million) going towards retailers.

This equates to around $22,000 per business operator, as they adjust their systems to accommodate the lowered tax rate on food items from 8 percent to 1 percent starting in April.

The government also plans to offer cash handouts based on income and has allocated $170 million for local authorities to build systems managing this distribution.