A tax hike threatens the health of Japan’s economy
Sep 26th 2019EARLIER THIS year the organisers of the Rugby World Cup, now taking place in Japan, held a briefing for bar and restaurant owners in Oita, a city on the island of Kyushu that will host five matches. As an example of what to expect, the briefing included a photo of a South Africa fan holding five jugs of beer in one hand. Rugby fans are a thirsty lot, the audience were warned. At the 2007 World Cup in France, beer ran short in Marseille when South Africa played Fiji. And something similar had happened four years earlier when Ireland played in Adelaide. The message to bar owners was clear: stock up.An influx of boozy rugby fans is not the only reason for retailers to top up their inventories this month. They must also prepare for quick-footed customers hoping to sidestep the onrushing taxman. On October 1st (after Scotland plays Samoa and before France meets America) Japan will raise its consumption tax from 8% to 10%. The tax falls on almost everything the Japanese buy, including gadgets, cars, new homes, magazines, restaurant meals and booze. Once in effect, the 10% rate will leave people with less money to spend. Until then, it gives consumers a powerful reason to buy what they can sooner rather than later.Choose us for news analysis that respects your time and intelligenceSubscribe to The EconomistWe filter out the noise of the daily news cycle and analyse the trends that matterWe give you rigorous, deeply researched and fact-checked journalism. That’s why Americans named us their most trusted news source in 2017Available wherever you are—in print, digital and, uniquely, in audio, fully narrated by professional broadcastersThis website adheres to all nine of NewsGuard‘s standards of credibility and transparency.ORContinue reading this articleRegister with an email address