Makers of Confectioneries with Toys Struggling over Tax Rates in Japan
Newsfrom JapanEconomy Politics Lifestyle
Tokyo, Sept. 4 (Jiji Press)--Japanese toy and food makers are struggling to determine whether a reduced tax rate will apply to confectionery products with toys after the consumption tax is raised next month.
When certain conditions are met, such confectionery products are regarded as being in the category of foods and nonalcoholic beverages subject to the current tax rate of 8 pct even after the tax is raised to 10 pct on Oct. 1.
According to the National Tax Agency's guidelines, such confectioneries are subject to the reduced tax rate when they are priced at 10,000 yen or below and the price of food accounts for two-thirds of the product price or higher.
Still, makers "don't set the proportions of confectionery and toy to the overall price," said an official at major toy maker Bandai Co.
The Bandai Namco Holdings Inc. <7832> unit plans to determine the proportions by considering in a comprehensive manner various factors, including costs and appeal to consumers.
[Copyright The Jiji Press, Ltd.]