Japan Eyes Shopping Reward Point Program to Offset Tax Hike
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Tokyo, Oct. 4 (Jiji Press)--The Japanese government is considering a temporary program to give shoppers at small retailers reward points equivalent to 2 pct of shopping amounts, in order to offset the impact of a planned consumption tax hike, informed sources said Thursday.
The reward point program is designed to help small retailers raise prices to reflect the tax increase from the current 8 pct to 10 pct in October 2019, according to the sources.
The ad hoc program would apply to only cashless payments, including those by credit card. The government also aims to promote a shift to cashless systems among small retailers by providing subsidies.
The industry ministry is tackling a goal of increasing the share of cashless payments in domestic personal consumption from about 20 pct at the moment to 40 pct in 2025.
The point program would be a key component of the government's planned stimulus package to cope with a possible demand drop in the wake of the tax hike.
[Copyright The Jiji Press, Ltd.]