10 Pct Tax Eyed on Food Eaten Inside Stores in Japan

Politics Lifestyle

Tokyo, Oct. 4 (Jiji Press)--The Finance Ministry is considering not applying a reduced tax rate to food and nonalcoholic beverages sold and consumed at the same stores when Japan's consumption tax is raised from 8 pct to 10 pct in October next year, it was learned Thursday.

The ministry now plans to apply the reduced rate of 8 pct to all food and nonalcoholic beverages at retail outlets, such as convenience stores, on condition that they are not consumed inside outlets, informed sources said while citing new criteria for the application of the reduced rate compiled by the ministry.

The new criteria do not reflect the convenience store industry's request for leaving the 8 pct tax rate unchanged for all food and nonalcoholic drinks, including those consumed in dining spaces.

To get full application of the reduced rate, grocery stores with sitting spaces will be required under the new rules to explicitly notify shoppers of prohibition of eating and drinking there, the sources said.

[Copyright The Jiji Press, Ltd.]

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