Shiokawa Says Japanese Public Should Settle Beer Tax Wrangle

by Mary Swire, Tax-News.com, Hong Kong

06 December 2001

Speaking on Tuesday, the Japanese Finance Minister Masajuro Shiokawa announced that in his opinion, the public should settle the dispute over whether to increase taxes on the low malt beer known as 'happoshu', which is currently taxed at half the rate of ordinary beer.

Last week, it was suggested that an increase in taxes on alcohol would boost the nation's faltering economy, but leading brewers such as Asahi, Kirin, and Sapporo were up in arms, (as were the nation's drinkers!) and fears were expressed that an increase in taxes could cripple the breweries' most popular brands.

The Japanese Finance Minister has responded to this by reassuring the country that the tax increase on happoshu is not central to the government's plans to stimulate the economy, although it has been estimated that a hike in beer tax could add an extra 250 billion yen per year to the 1.8 trillion yen already garnered in alcohol taxes.

At a news conference earlier this week, Mr Shiokawa announced: 'It is something the public likes and enjoys, so I think it would be best if the issue was decided by public opinion.' However, he added that although the tax increase was not crucial, the government would certainly welcome the additional revenue if the proposal is approved by the Japanese people.

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