Japan will reduce the tax on beer and increase the taxes on happoshu and “new genre” beverages in three phases (2020, 2023, and 2026), ultimately to 157 yen/litre. However, taxes on wine will be raised in two phases (2020 and 2023), making it equal to the reduced tax rate for sake, at 100 yen/litre. Taxes on spirits, not subject to the upcoming tax hikes, are high at 370 yen/litre if less than 37% ABV plus an additional 10 yen/litre for each additional percentage of ABV.
- Japan should promptly revise its liquor tax system for beer in accordance with the 2017 tax reform.
- The EBC objects to the increase in the tax on wine and urges Japan to reduce taxes on spirits.