How to adjust Japan’s consumption tax to save money for the Japanese tourism industry?

Japan’s consumption tax began to be adjusted last year. I'm sure you already know some of this. Do you know how to adjust it? Today, the editor will give you a brief introduction to how Japan’s consumption tax will be adjusted this year, and how we can save money!

How Japan’s consumption tax system will be adjusted

Standard tax rate - 10%

For general consumption activities such as food, clothing, housing, transportation and entertainment, the tax rate will be increased from the original 8% to 10% . For example, the original after-tax price of goods in a 100-yuan store will change from 108 yuan to 110 yuan.

Reduced tax rate system—maintained at 8%

After Japan raised the consumption tax in the past, it caused a short-term economic recession. At the same time, considering that tax rate adjustments may impose a burden on people with lower incomes, a light tax exemption system was introduced.

: Applicable objects of reduced tax rate

1. Food and beverages (except alcoholic beverages and in-house catering)

If you purchase food and beverages in hypermarkets, department stores or convenience stores Products can maintain a tax rate of 8%. But for example, if you eat in the dining area of ??a supermarket, you will be charged a 10% consumption tax. For another example, when eating at fast food restaurants such as McDonald's, the consumption tax is calculated at 10%, but if you take it home, a reduced tax rate of 8% can be applied.

2. Newspapers (newspapers that are ordered regularly and published at least twice a week)

If you bring over-bought food to the internal area to enjoy, I am afraid that a 10% consumption tax will be levied.

How to order food for take-out prices?

Due to two different tax rates, on the one hand, it may make the store’s accounting more complicated, and it may also confuse customers. . Matsuya and Yoshinoya, both well-known Niuniu chain stores, also have different price calculation methods. Matsuya, in order to avoid customer confusion, is expected to unify the prices of goods for internal use and takeout; on the other hand, Yoshinoya plans to have different prices for internal use and takeout, so you need to find out the price first before placing an order.

Matsuya plans to adopt a flat price for “in-house use and takeout.”

Yoshinoya will apply a different tax rate, so takeout will become cheaper than domestic use.

Current location Japan is facing a declining birthrate and aging society. In order to improve the social welfare system, the amount of social insurance that everyone must pay is getting higher and higher. For the sake of fairness, the Japanese government will not let the burden fall on specific ethnic groups and age groups. Therefore, the consumption tax that everyone must encounter in daily life will be increased, and the financial resources of social insurance will be expanded through tax increases.

In addition, Japan held a re-election of the House of Representatives on July 21. The ruling Liberal Democratic Party led by current Prime Minister Shinzo Abe and its allied parties have won more than half of the seats in the Senate, which also means that the consumption tax increase advocated by the Abe regime will officially take effect on October 1 this year as scheduled.

Japanese Prime Minister Shinzo Abe’s regime has won more than half of the seats in the Diet and is expected to raise the consumption tax in October as scheduled.

Why does Japan need to increase taxes?

Since we cannot escape the fate of the consumption tax increase, as foreign tourists, we actually have some tips on how to save money when traveling to Japan.

1. Take it out if you can.

Buy snacks in the supermarket, or go to fast food restaurants or snack bars. You can choose to take them back to the hotel to enjoy, or find a river bank, park, etc. Not bad for a sit down picnic. Although it is a bit troublesome and not very environmentally friendly, if you calculate it based on the 2% consumption tax difference, you may still save some money during the trip!

2. Try to find stores with duty-free services.

I believe anyone who has been to Japan knows that the biggest benefit for foreign tourists is that they can enjoy tax refund services when shopping in drug stores or clothing stores for more than 5,000 yen. In this way, you don’t have to worry about how or how much the tax rate increases, you can keep it.

3. Use electronic payment

The Japanese government also plans to use point rewards to reduce the burden on consumers. As long as you pay with a credit card, ApplePay, transportation IC card or other electronic payment methods when shopping, you can enjoy 2% to 5% points back, which can be used on your next purchase.

If you are traveling in Japan, be sure to remember this information when shopping! This way you can save money and learn about Japan’s consumption tax.

Don’t blindly shop!