Japan’s 5% consumption tax was raised to 8% starting April 1, 2014. Not only did Japanese consumers rush to shop, but tourists visiting Japan also took advantage of this “last 5% tax rate” wave to snap up goods and souvenirs. For a product priced at 100 yen (for example), the price after tax would rise from 105 yen to 108 yen, which is about a 1-yuan Taiwan increase – not much, but the difference becomes noticeable when buying higher-priced items, meaning your shopping budget for a trip to Japan will naturally go up.
Recognize what Japanese price tags mean before you shop. (Graphic by / MOOK Scenic Spots Home)
When shopping in Japan, pay special attention to how prices are displayed. “Tax-included” means the price shown already includes tax, while “tax-excluded” means the price does not include tax. Be sure to check before paying, to avoid surprises when the 8% consumption tax is added. Major shopping malls and department stores in Japan also offer tax refund services for tourists, usually requiring a minimum purchase amount (such as 10,000 yen) and presentation of a passport. Those who wish to claim a tax refund for foreign travelers should not forget to bring their passports when shopping.
Japanese price tags distinguish between tax-inclusive and tax-exclusive items; this one shows a tax-inclusive price. (Photo / Zhang Yingying)
After the consumption tax rose to 8%, prices increased across the board in transportation, daily life, dining, and more. For example, drinks in vending machines all went up by 10 yen, convenience store drinks rose by around 1–2 yen each; subway and JR train fares increased by an average of 10 yen, and stored-value card deductions per one-way trip went up by about 1 yen on average; clothing, accessories, and footwear also saw price hikes, and the one-day, one-park ticket at Disneyland also increased by 200 yen. Travelers on a self-guided trip can expect slightly higher transportation costs. Don’t forget that the consumption tax in Japan has risen to 8% starting April 1.
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