Pricing in Japan is about to become a lot more streamlined as price tags for all products and services will have to include consumption tax from April 1 onwards. As reported by Japan Today, retailers as well as restaurants will be expected to include the consumption tax in their listed prices. For most purchases in Japan, consumption tax is currently set at 10 percent.
However, in the case of restaurants or other businesses serving food, consumption tax for takeaway purchases is 8 percent, while diners eating in pay 10 percent. Due to the differing tax rates, venues must include a reminder somewhere on the menu that notifies customers of the difference.
The new rule will effectively ban retailers from advertising their wares at low, pre-tax prices or displaying the final prices in small or illegible font. Currently, many shops simply display the lower price and add one of three Japanese terms meaning 'plus tax', 'not including tax' or 'base price’, which can be confusing for customers when calculating their final costs.
If you’re wondering whether Daiso will have to start calling itself a ¥110 shop, don’t worry – store and sales event names are exempt from the new rules. As long as all products sold and displayed in the shop clearly show their final price, Japan’s ¥100 shops are safe for now.
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