Japan’s consumption tax reduction bill was approved by the House of Representatives with a majority vote from the ruling coalition.

The bill is the biggest focal point of the current Diet session.

The proposed legislation will be sent to the Senate, where support from opposition parties will be essential as the ruling coalition lacks a majority in the upper house.

The bill calls for reducing the consumption tax on food and beverages from the current 8 percent to 1 percent for two years starting April 2027.

As for the 1 percent tax that consumers will pay, the government plans to provide income-based benefits, making the consumption tax virtually zero.

Political maneuvering between the ruling and opposition parties over the bill is expected to intensify in the upper house.