Tax Hike to Raise Household Costs by 50,000 A Year in Japan
Newsfrom JapanPolitics Lifestyle
Tokyo, Sept. 29 (Jiji Press)--Households in Japan are expected to increasingly opt to save more rather than spend as a consumption tax increase from 8 pct to 10 pct, set for Tuesday, is expected to raise their costs by nearly 50,000 yen on average per year despite government measures to mitigate the impact, including a reduced-tax rate of 8 pct on food and beverages excluding alcohol.
Monthly expenses will increase by some 4,000 yen on average at wage-earning households with two or more members and an annual income of some 6.5 million yen, an estimate by financial planner Shinichi Kashiwagi, who used a survey on households by the internal affairs ministry, showed.
The figure is based on an assumption that monthly expenses total some 300,000 yen and 200,000 yen of the total is subject to the higher consumption tax rate, according to Kashiwagi.
Starting in October, at shops run by small to midsize operators, up to 5 pct of purchase amounts will be returned to consumers in the form of shopping points when they use cashless payments. But Kashiwagi said, "It is questionable if people buying groceries at large supermarkets will choose to go to smaller stores."
The maximum amount consumers can earn under the point program will be limited to about 2,000 yen a month, Kashiwagi said. "It will be just better to review a family budget and cut unnecessary expenses."
[Copyright The Jiji Press, Ltd.]