Japan: Taxes for regular beer to decrease, those for third-segment drinks to rise as from October

Changes to Japan’s tax system from October spells bad news for drinkers in Japan, as tax rates and, therefore, prices, will be hiked for some alcoholic drinks, Nippon.com reported on September 29.

Prices will also be raised for some tobacco products.

Taxes for so-called third-segment quasi-beer are slated to rise 9.8 yen per 350 ml, while those for fruit-based alcohol, such as wine, are slated to rise 3.5 yen for the same volume.

Sales of third-segment beer-like beverages, which are cheaper than regular beer, had been on the rise since the consumption tax rate hike last October led people to cut back on spending. A spike in consumption of food and drinks at home amid the novel coronavirus epidemic has also contributed to the boom.

On the other hand, taxes for regular beer will be lowered by 7 yen per 350 ml, while those for sake will be reduced by 3.5 yen for the same amount.

28 September, 2020