Beer tax

Japan has historically had three different tax rates for beer-type beverages, depending on their malt content, with lower-malt products subject to lower tax rates. This created a strong incentive for the development of beers with significantly lower malt content than is typically found in beer in other markets. Following a six-year harmonisation process, from October 2026 all beer-type beverages will be subject to the same tax rate. In practice, the previously lower tax rates have been increased, while the highest tax rate, applicable to conventional beer, has been reduced. The EBC very much applauds Japan for taking these steps toward a more level and neutral tax system. The harmonisation will help ensure that the tax system does not disadvantage beers based on their malt content, including high-quality and higher-end beers, and will allow consumers to choose between different products without tax differences distorting the market.