Tuesday, October 1, 2019

Taxes

Today is October 1st in Japan and the government has raised the consumption tax from today.  Yesterday the tax ran 8%.  From today it will be 10%.

I have never been good at numbers so I suppose the ten percent will make it easier for me to do some figuring but then again, I am so bad at numbers I tend to just hand over from my wallet whatever someone tells me to pay and not think about percents and what not.  (By the way, Japan doesn't have the custom of tipping which is a life-saver for me as I am NEVER able to figure out what to tip when I am in the States!)

Tetsu reported that the drugstore's shelves were very bare yesterday with all of Japan buying up the necessities that people will use, thus they might as well shop before the two percent increase.  I choose not to think about WHEN the timing is right to buy things and that includes the rate of exchange when converting my yen into dollars or so forth.  Ah well... It all comes out in the wash.  No sense in trying to squeeze a few more pennies (or yen) into my wallet.  This may be why my wallet doesn't have much money in it.

And speaking of not having money in my wallet, Japan is also trying to get everyone to go cashless and use the apps that can be downloaded to Smartphones.  I THINK the signs in the stores are telling me that if I go cashless, I will make a five percent savings which despite the two percent increase will actually save me three percent more than even before the government policy change.  And if that doesn't make me just want to give up buying anything I don't know what will!  I can't figure out if I'm losing money by not going to the store or if I'm saving money by buying a lot of stuff!  Do you wonder why I barely passed my economics class when I was in college...
Something else that will add to my confusion is that grocery consumption tax will stay at 8% BUT, let's say you want to buy a rice ball or a sandwich and just eat it at the supermarket, then you'll be taxed 10%.  Japanese supermarkets often have nice little eat-in corners where water or tea may even be supplied and I often do my grocery shopping just before lunch time and pick-up something in the delicatessen section.  I pay for it and then go sit in the eat-in corner and enjoy my simple lunch.  From today however the customer will be required to let the cashier know that an item will be consumed at the eat-in corner wherefore the 10% tax will be applied.   I guess I'll just go and eat my lunch in the car...  And I can't really see cashiers running after customers demanding payment if the customer heads for the eat-in corners when they haven't paid the extra 2% tax.

This confusion is going to overflow into the fast-food establishments also.  You buy a hamburger to take home to your husband but decide to drink a soda while you wait for your order?  The hamburger will be taxed 8% (you are taking it home) but the soda will be taxed 10% because you are drinking it on the premises.  What a lot of rigamarole!  I think the government is just making a lot of extra work for itself!

I guess if anyone wants me at lunch time, look for me in my car.

7 comments:

  1. So confusing!! This reminds me of when I used to work in a fabric store--- many, many years ago. At that time there was no sales tax (in the state where I was working) on anything that you could eat or wear. So, naturally, we were required to ask the customer what they were going to make with the fabric. If they were going to make curtains or pillowcases the fabric would be taxed but if they were going to make a dress it wasn't. Everyone was buying fabric to make clothes!! ;) Good luck going forward. Oh, and by the way: I am nervous about paying w/ my phone. Oh, well...

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  2. Our sales tax (consumption tax) went up 1.5% today because our village voted(not me)to add a 1.5% village tax to the 5.5% state tax. I also heard something about the state raising its sales tax so it may even be higher. I'd really like to see what I'm getting out of all this steadily increasing tax.

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  3. LOL I remember having those kinds of questions when they started charging taxes here on food. They don't charge taxes on food at the grocery store. At the restaurant, if you eat in, there isn't a tax but there is if you take it to go. If the restaurant already has prepackaged food, like at McDonalds, I would order it to go and sometimes change my mind and eat in instead. I can admit this because I don't eat at restaurants much anymore so the statute of limitations to take me to jail must have expired.

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  4. Yesterday I walked into my usual shop, and walked out without buying anything. All the marked prices have gone up too. If I have to pay with a card, I may stop buying anything. I want to know exactly what I have on hand. Even putting money into a train pass is troublesome, especiaally when it runs out while I am on the road.

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  5. The Japanese Government make even the simplest thing complicated. Raising the VAT could have been so easy, now they have to complicated it with eat in/out rules, double cash registers, and the filling in of forms and registration procedures on the internet are too confusing.
    I spent a fruitless hour last night trying to register my Suica train card to qualify for points - didn't succeed.
    Then asked at the station this morning, the JR staff didn't know what I was talking about!
    This point collecting project and double VAT rates seem hard for staff and 'professionals' to understand, too.
    Queenie

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  6. The where you are eating part just doesn't make sense. What does it matter where the food will be eaten?

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  7. How confusing. I'd be eating in my car too.

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