Crazy Eights

Crazy Eights

What you need to know about the upcoming tax hike

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Originally published on metropolis.co.jp on March 2014

On April 1, consumption tax in Japan will increase from 5 percent, where it has sat since 1997, to 8 percent. Sales of cars and other big-ticket items, such as household appliances, are up this month as consumers buy now to avoid paying the higher tax rates next month. Here’s what you can do to prepare:

Commuter passes

  • If  you use a monthly commuting pass from JR or Tokyo Metro, you can buy a pass valid from April 1 beginning on March 25 to save 3 percent.

Items to buy now:

  • Airline tickets for your summer holidays
  • Non-perishable foods, canned foods
  • Clothing
  • Jewelry, brand items
  • Cigarettes
  • Household appliances (washing machines, refrigerators, etc.)
  • Gift certificates for books, beer

(Note that supermarkets are expected to be packed in the weekend before April 1 with buyers in a mad rush to stock up.)

Don’t bother to buy:

  • Air conditioners (new models for 2014 are not out yet and will be cheaper when they’re released)
  • Toilet paper, tissues and sundries (often on sale anyway)
  • Computers, audio equipment, TVs (prices will fall when new models for spring come out)
  • Cigarettes

Taxes are not going up on:

  • Rent and housing loans
  • Insurance premiums
  • School tuition (except further education institutions)
  • Birth and funeral expenses
  • Financial certificates and securities