
Incomplete article. I'm going to the library to read the rest.
Understanding Japan's Consumption Tax (Part 1: How it Works)
In the current Upper House election, the ruling parties are promising cash handouts, while many opposition parties are calling for lowering or even scrapping the consumption tax. It’s rare for the tax to be such a major election issue.
Q: What is the consumption tax in Japan?
A: It’s a tax on goods and services. It started in 1989 at 3%. The rate increased to 5% in 1997, 8% in 2014, and now it’s 10% (with some items still taxed at 8% under a reduced rate). Some things like land sales and welfare services are not taxed.Q: Who pays it and how?
A: Consumers pay it when buying things, but businesses collect it and then pay it to the government.Q: How much money does the government get from this tax?
A: In fiscal year 2023, consumption tax revenue hit a record 23 trillion yen. For 2025, the government expects even more—about 24 trillion yen.
by MagazineKey4532