Retailers and restaurant operators in Japan have expressed concerns about increased clerical work after the government’s proposed consumption tax refund system comes into effect in two years.
Under the system, designed by the Finance Ministry, a reduced tax rate of 8 percent will be applied to all food and beverages, excluding alcoholic drinks, after the consumption tax is raised from 8 percent to 10 percent in April 2017. Restaurant costs will also be eligible for the lower rate.
Consumers would pay a uniform 10 percent tax on all purchases, with the refund provided later using the My Number national identification system for taxation and social security management purposes.
(Source: The Japan Times Online)