| |
Beer tax is about half of retail prices |
|
| |
Beer is the most popular beverage alcohol in Japan, but the tax on beer is nearly half of the typical retail price of beer in popular stores. For a large bottle of beer (633ml) the tax burden is broken-down to 139 yen (40.3%) for Liquor Tax (Specific Consumption Tax), and 16 yen (4.8%) for Consumption Tax (General Consumption Tax), and is double-taxed, making it 155 yen, which is 45.1% of 345 yen, the typical retail price. (See Figure 1: "Tax burden per large bottle of beer (633ml)")
This tax rate is the highest among all alcoholic beverages in Japan (see Figure 2: "Liquor tax amount comparison per 1 liter of 1 degree of alcohol in Japan"). The rate has remained at the same high rate even after the introduction of General Consumption Tax in 1989, which taxes all consumption evenly across the country. |
|
| |
|
|
| |
|
|
| |
|
|
| |
Beer tax rate in Japan is very high, making Japan's beer tax one of the world's most expensive |
|
| |
Japan's tax rate on beer is prominently high in ratio and monetary amount even by international standards (see Figure 3: "Liquor tax indexes per 1 degree of alcohol in major countries"), and is high as about 11 times compared to the U.S.., and about 15 times compared to Germany, the home of beer (Source: Brewers Association of Japan / TTM rates as of June 2008).
In most Western countries, generally "distilled spirits have higher tax rates, and fermented liquor including beer and wine have lower tax rates". However in Japan, beer has the highest tax rate. This, of course, comes back to the retail price of beer, and as a result, Japanese beer is one of the world's most expensive one. | |
| |
|
|
| |
|
|
| |
|
|
| |
Update information |
|
| |
Beverage Alcohol is categorized for tax purpose by Tax Law and Beer is defined as to have more than 66.6% of malt in raw material composition, whereas those products brewed with less than that proportion of malt is categorized to others and mostly taxed less than Beer. Many breweries have been developing those products that are categorized other than Beer in decades. |
|
|
