Tax Hike Causes Service Disruptions in Japan

Economy

Tokyo, Oct. 1 (Jiji Press)--Some Japanese businesses, including retailers and restaurants, saw their services disrupted by system glitches following the consumption tax hike to 10 pct from 8 pct Tuesday.

Among them was convenience store operator Ministop Co. <9946>, which overcharged some customers by several yen due to flaws in cash registers updated to reflect the tax increase.

Also on the day, Japan shifted to a two-tier rate system that applies 8 pct to a handful of items, mainly food and beverages, and 10 pct for all remaining items.

The complex system is a headache for many retailers and restaurants. The tax rate stands at 8 pct for takeout food and 10 pct for food consumed at stores.

According to Ministop, some outlets sold products subject to the 10 pct tax at the rate of 8 pct while other stores misprinted receipts.

[Copyright The Jiji Press, Ltd.]

Jiji Press