banking

It’s officially happening after many delays and false starts, Japan’s consumption tax (消費税 shohizei) will go from 8% to 10% on October 1st, 2019. The tax is levied on almost every purchase, from food and drink to train fares and utility bills; even the fees incurred from using the ATM and parking lots aren’t safe from the tax hike. Remember, this is a national sales tax increase and has nothing to do with income taxes (所得税 shotoku zei), or local residence taxes (住民税　jyuumin zei) at all. But because it is levied on anyone buying anything in Japan, from residents and citizens to tourists and visitors alike, it stands to be the biggest tool the national government has to collect revenues. We’ve done this before though, right? If you’re not fresh off the plane, then you may remember that in April of 2014 the consumption tax went from 5% to 8% literally overnight. Confusion reigned in the months afterward for several reasons: Usually, the tax was included in the pricing of all items at stores prior to the rate increase. Afterwards some shops chose to use “before tax” pricing and a lot of people were caught off guard at the register.…