Crazy Eights

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