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