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Consumption Tax Rate increases by 2% on October 1.

The change of consumption tax rate took effect on October 1.

· Consumption Tax

The change of consumption tax rate took effect on October 1. This increase of consumption tax rate is the 3rd. The consumption tax was introduced with 3% in April 1989 and the rate increased to 5% in April 1997 for the first time. In April 2014, the consumption tax rate increased for the second time from 5% to 8%. Just recently, the consumption tax rate increased for the third time from 8% to 10%. Tax revenues in total between 1989 and 2019 is about 50 trillion yen to 60 trillion yen but consumption tax revenue between 1989 and 2019 increases from 5 trillion yen to 20 trillion yen. Japanese government considered consumption tax revenue as important.

The difference between the current consumption tax increase from the previous one are a cashback and a point-back by cashless payments. When you buy something by your credit card or electronic payments like nanaco, Suica and ICOCA, you will get a cashback or a point-back at the day of purchase or later. I will explain the receipt below which a cashback is shown.

I bought onigiri, bread and drink at Seven-Eleven on October 1. The consumption tax rate was 8% because these items are foods. Total bill was 486 JPY but I only paid 477 JPY because I got a cashback as I paid using nanaco. "-9" shows a cashback and I saved 9 JPY on this purchase. The cashback and point-back campaign will continue for several months. You should make your payment using credit card or electronic payment. You may not get big money by cashback and point-back but you would feel in the future that many a little makes a mickle.

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