Japan's central and local governments held their first consultation on August 10 over the early introduction of a "finely tuned income-linked benefit" system for low- and middle-income earners, exposing sharp differences over how the program should be administered and funded. The government plans to cut the consumption tax on food and beverages from 10% to 1% for two years from April 2027 and use the equivalent tax reduction as a financial source for cash benefits that vary by income, ahead of full implementation in fiscal 2029 under its broader refundable tax credit policy. Representatives from the National Governors' Association, the Japan Association of City Mayors and the National Association of Towns and Villages warned that the scheme could impose heavy administrative and financial burdens on municipalities, especially because eligibility and payment levels would be tied to income rather than delivered as a uniform handout. To speed disbursement, the government proposed making applications unnecessary in principle for recipients who have preregistered a Public Money Receipt Account linked to the My Number system, and it is also considering a national call center to handle resident inquiries. The meeting ended without concrete conclusions, leaving the division of fiscal responsibility between the national and local governments as a central unresolved issue.