Some Confusion Seen on 1st Day of New Tax System

Politics Lifestyle

Tokyo, Oct. 1 (Jiji Press)--The complex systems of two-tiered consumption tax rates and point rewards prompted some confusion among consumers and stores as the systems started in Japan on Tuesday.

At a cafe in Tokyo's posh Ginza district, an office worker in her 40s was surprised to find that the coffee she was drinking at the store was taxed at 10 pct. The woman, who drinks coffee at the store every morning before going to work, said she did not notice the price change.

"I am shocked. I will order it to go from next time," she said.

Japan raised the consumption tax rate to 10 pct from 8 pct on the day. Some items, mainly food and beverages, are exceptions, to which the 8 pct rate continues to apply.

At restaurants, food and beverages for takeout are taxed at 8 pct, while the 10 pct rate applies to those consumed inside the stores.

[Copyright The Jiji Press, Ltd.]

Jiji Press