The wallets of Japanese residents may get a little lighter next year, as the prices of most goods and services are set to rise under a new consumption tax system starting in October 2019.
Under this new system, consumers may have at least some reprieve, as taxes on important household items — mostly food and beverages — will remain at the existing 8 percent rate, while levies on almost all other goods and services will rise to 10 percent.
Although adopting a consumption tax with multiple rates can lighten the burden on those with lower incomes, there is growing confusion over how to differentiate which items will be taxed at the regular or preferential rates.
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