Consumption Tax Increase in Japan
On October 1st, Japan is set to raise the consumption/sales tax from 8% to 10%. This is the second stage of a two part raise and it has been postponed several times. The first was from 5% to 8% in April 2014.
Food items purchased to be eaten away from the place of purchase will remain at 8%. If you eat at the restaurant - 10%, if you buy at the grocery store to eat at home 8%. If you buy something to eat at 7-11 and eat at the little counter inside - 10%, if you walk outside with it 8%. Will the cashier ask or do you have to be honest and tell him that you are eating in? I don't know.
The last time the tax went up, many people purchased big items before the increase to save on the tax. In the months after, sales across the country were low. I've heard people I know say they will buy an automobile or appliances before October. I don't have plans to buy anything big, but I might stock up on toothpaste and laundry soap and toilet paper kinds of things to save a few yen.
I walk to the store and have to carry what I purchase, so I don't imagine I will stock up much.
What is the sales tax rate where you live?
8 comments:
Our sale tax rate is..17%! Food is very expensive here, as well as other items. I usually stock up on toilet paper and bottled water.
Is the consumption tax included in the displayed price, or is it added at the cash register? Here it is included in the advertised price, so easy to ignore. I hated shopping in the US where you thought the price was x, but when you went to pay they added some tax to that amount.
Our state sales tax (Michigan) is 6% on goods other than retail food and (I think) medicines. Every state in the USA has its own rates and policies, including occasional tax holidays, for example in Massachusetts in august. Some items are also taxed by the Federal Government, such as air travel. Some municipalities also charge taxes on specific things, for example, there are special taxes on parking and on car rentals at some airports.
It's difficult to compare tax in different countries, because income taxes and social welfare taxes are much larger in some countries than in others, and are applied to different income levels in different ways. European style value-added taxes are also very hard to understand.
Best... mae at maefood.blogspot.com
That sounds very complicated. Here it's a straight six percent on most things. But if you buy food at a grocery, there is no tax. You're taxed only on non-food items, like toilet paper or cleaning things.
Hi Pamela oh i am not sure of what our consumption tax is ,its a worry with things going up all the time ,hope you have a lovely day my friend xx
Interesting to read the comments. Indiana sales tax is 6%. No tax on food in the grocery store here. Carry out food is taxed at say a gas station.
xx, Carol
We have a two-tier sales tax as well - 7% on food and books, 19% on anything else. Getting food to eat at home is 7%, eating at a restaurant 19% - and yes, places that offer both have to ask. The price doesn't change, though, the profit is just less if you say you're going to eat there. They can't really do anything if you lie or change your mind, either, but I'm pretty sure that won't be much of a problem in Japan!
Standard tax on most purchases and services here in UK is 20%, but zero rate for most food, books, newspapers and children's clothes. There is also a reduced rate of 5% for some products.
xx
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