AMSTERDAM – Japan’s recent talk of eliminating the tax on food is making headlines worldwide. Political parties are considering dropping the consumption tax on food products from 8% to 0%. This move aims to ease the rising cost of living. However, the tax on meat might stay at 8%, which some experts are suggesting as a sound option.
Concerns about Japan’s high national debt are rising. Investors worry that cutting taxes could strain finances for social security. Without the food tax, the government estimates a loss of around 5 trillion yen in annual revenue. This is significant for a country already grappling with its debt compared to other wealthy nations.
The World Bank and the U.N. Food and Agriculture Organization recently recommended that wealthy countries like Japan consider a zero tax on fruits and vegetables. They also suggested raising the tax on meat, which is linked to health and environmental issues. The idea is to lower prices for healthier foods while maintaining a sustainable fiscal policy. Rethinking import tariffs on meat and focusing on fresh produce could balance the budget without compromising public health.
Currently, Japan has a 10% consumer tax on non-food items. Keeping the tax on meat at 8% is one possibility. Alternatively, a new tax on meat ranging from 25% to 40% could be introduced. This “true price” approach considers additional costs—like health impacts and environmental damage—caused by meat consumption. For example, producing just one kilogram of beef emits about 30 kg of greenhouse gases. The economic costs linked to this pollution can add up to 900 yen for every kilogram of beef produced.
Twenty-five years ago, OECD members agreed on applying the principle of “polluter pays” in various policies to combat pollution. This could serve as a guiding principle for Japan as well. In Europe, over 80% of the European Parliament supported a zero tax on healthy foods and a higher tax on unhealthy options in 2021. Many hope that Japan will follow suit.
At the recent U.N. climate conference, 28 low-income countries, including 21 small island nations, urged wealthier countries to tax meat more heavily. This could not only combat greenhouse gases but also help generate climate finance.
In Japan, meat consumption is above the global average. In 2022, each person consumed about 60 kg of meat, rising to 63 kg in 2023. High meat consumption is linked to serious health issues like colon cancer and type 2 diabetes, leading to increased healthcare costs.
The Planetary Health Diet advises that individuals consume no more than 16 kg of meat per year—roughly a quarter of what the average Japanese eats. It promotes eating a limited amount of red meat and encourages more plant-based foods for better health and environmental outcomes. Implementing higher taxes on meat could steer consumers toward healthier choices and align with these recommendations, benefiting both the public and the economy.
Jeroom Remmers, director of the True Animal Protein Price Coalition, emphasizes that fair food pricing, including taxes on harmful foods, is essential for a sustainable future.
