Dear MEL Topic Readers,
Japan urges its young people to drink more to boost economy
If the government wants to increase tax revenues, there are several options they can take. One way is to raise the tax rate, such as sales tax or income tax. This is the least favored way by anyone. Another way is to levy new taxes on things, activities, or usages. For example, a sugar tax for healthier lives, a fossil fuel tax for the environment, or a smartphone tax for wellbeing. Again, any new tax is unpopular. So, when Japanese alcohol tax revenues declined too much, the national tax agency came up with a campaign to encourage alcohol consumption. Indeed, stimulating consumption is one way to increase tax revenues without causing a backlash. However, as the Japanese population is aging and shrinking, alcohol consumption declines accordingly. Also, the Covid pandemic significantly hit the business of restaurants and bars. Under any circumstance, is encouraging people to drink more alcohol a sensible way to increase tax revenues? What does the health ministry think or say? Is Japan’s alcohol industry behind this campaign?
Enjoy reading the article about Japan’s new initiative to increase its tax revenues.
https://www.bbc.com/news/world-asia-62585809
Japan urges its young people to drink more to boost economy
If the government wants to increase tax revenues, there are several options they can take. One way is to raise the tax rate, such as sales tax or income tax. This is the least favored way by anyone. Another way is to levy new taxes on things, activities, or usages. For example, a sugar tax for healthier lives, a fossil fuel tax for the environment, or a smartphone tax for wellbeing. Again, any new tax is unpopular. So, when Japanese alcohol tax revenues declined too much, the national tax agency came up with a campaign to encourage alcohol consumption. Indeed, stimulating consumption is one way to increase tax revenues without causing a backlash. However, as the Japanese population is aging and shrinking, alcohol consumption declines accordingly. Also, the Covid pandemic significantly hit the business of restaurants and bars. Under any circumstance, is encouraging people to drink more alcohol a sensible way to increase tax revenues? What does the health ministry think or say? Is Japan’s alcohol industry behind this campaign?
Enjoy reading the article about Japan’s new initiative to increase its tax revenues.
https://www.bbc.com/news/world-asia-62585809
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