Don Quijote to Offer 8 Pct Discount until Eve of Tax Hike

Economy

Tokyo, Sept. 12 (Jiji Press)--Japanese discount store operator Don Quijote Co. said Thursday that it will offer an 8 pct discount from Saturday through Sept. 30, the eve of the planned hike in the country's consumption tax to 10 pct from 8 pct.

With the move, the company aims to whet consumer appetite, at a time when retailers in the nation are generally seeing a weaker-than-expected rise in demand ahead of the Oct. 1 tax hike partly because the government is set to keep the tax rate at 8 pct for certain items.

The discount will be offered at 384 Don Quijote outlets across the country, covering daily goods, home appliances clothing and other items bought with any means of payments, such as cash or credit cards. But foods and alcoholic beverages will be excluded from the discount campaign.

It will be the first time for Don Quijote to uniformly conduct a discount campaign across the country. The company allows each outlet to set the prices of products they handle.

While the standard consumption tax rate is slated to be raised to 10 pct, the rate will be left at the current level for foods and beverages, excluding alcoholic drinks, and some other products. As another measure to ease the tax hike impact, the government will introduce a program to give points to shoppers who make cashless payments.

[Copyright The Jiji Press, Ltd.]

Jiji Press