TOKYO -- A temporary consumption tax cut on food approved by Japan's cabinet Friday leaves many important details unresolved, including how to pay for it and who will qualify, setting the stage for intense debate in parliament.

The legislation would lower the 8% tax rate on food and beverages to 1% for two years starting in April. The measure is intended as a bridge to a new income-linked benefit program the government aims to fully launch in fiscal 2029.

During fiscal 2027 and 2028, advance payments equivalent to the value of the reduced 1% food tax rate would be distributed to low- and middle-income earners. The government estimates these payments will total roughly 600 billion yen ($3.79 billion) a year.

But as the bond market weighs the fiscal implications of the plan, the legislation omits key specifics, including the amount each person would receive and income thresholds for eligibility. Those details will be filled in separately with cabinet ordinances.

The design of the two-year payments is expected to be finalized during year-end budget negotiations, while the structure of the subsequent permanent program, along with its long-term funding sources, remains under consideration.

On eligibility, the bill states policymakers should consider comparable programs overseas. Similar benefits in Europe and the U.S. generally cover about 30% of workers. Applied to Japan's income distribution, that would correspond to workers earning up to around 3 million yen a year.

Overseas practice is "only one factor to consider," said a senior Finance Ministry official.

The tax cut and advance payments together would require about 5 trillion yen per year, but funding has not been secured. The government says it will finance the measures through a review of expenditures and revenues without relying on deficit-financing bonds, with details expected to come during the year-end budget process.

Support measures for farmers, restaurants and other businesses affected by the tax cut also remain undecided. The large number of unresolved issues leaves room for amendments sought by opposition parties.

"It is only natural that we work to gain the understanding of as many parties as possible," said Takayuki Kobayashi, policy chief for Prime Minister Sanae Takaichi's Liberal Democratic Party, at a news conference last week.

Assistance for the restaurant industry could become a key bargaining chip. Under the proposal, takeout meals would be included in the tax cut, while restaurant dining would remain subject to the 10% rate.

"It is important to carefully provide appropriate support to those who are actually affected," Takaichi told the upper house Friday.

Yuichiro Tamaki, head of opposition Democratic Party for the People, warned that the tax difference "could cause consumers to avoid eating out." His party is backed by a labor federation representing many restaurant workers and retailers.

Komeito, another opposition party, has not ruled out supporting the bill. Party leader Mitsunari Okamoto gave the government's proposal "30 points" out of 100 during a television appearance on Thursday.

"It may be better than having nothing at all," he said. "I want to debate it carefully, despite my reservations." The tax proposal could become an issue in the upper house election set for summer 2028.

"We will ensure that low- and middle-income workers receive support that outweighs the effects of the consumption tax cut," Takaichi said at a lower house plenary session Thursday, speaking on the presumption that the cut will be rolled back after two years.