Go Back  FlyerTalk Forums > Destinations > Asia > Japan
Reload this Page >

Beating a 3% tax increase

Beating a 3% tax increase

Old Feb 20, 14, 5:31 pm
  #1  
Original Poster
 
Join Date: Feb 2008
Location: Kobe, Japan
Programs: Bonvoy Platinum, IHG Platinum
Posts: 625
Beating a 3% tax increase

On April 1st the sales tax (on everything) in Japan will rise from 5% to 8%, and to 10% in 2015. As the yen is weak now and interest rates are around zero (have been for decades), it makes sense to spend. The question is whether there is any way two get ahead of this.

Any suggestions?

I realize this might be better placed under "Japan", but perhaps others worldwide have faced the same issue.
JapanFlyerT is offline  
Old Feb 20, 14, 5:54 pm
  #2  
 
Join Date: Aug 2013
Location: Phoenix, AZ
Programs: US/AA, UA, AS, BA, IHG, HGP
Posts: 215
Big ticket items. If you were thinking about holding off that new car/boat/house/land/TV/trip-of-a-lifetime do it now, or pre-order that sucker. If you run some sort of side business it might be practical to pre-purchase supplies. Same goes for personal non-perishables. All I got.
TMKTakot is offline  
Old Feb 20, 14, 6:22 pm
  #3  
 
Join Date: Feb 2013
Location: Beantown! (BOS)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 2,607
Sales of big ticket items are seeing increase in sales in Japan, reported often in media and indicating consumption tax increase has big part in this trend happening in Japan right now.
AlwaysAisle is offline  
Old Feb 20, 14, 8:05 pm
  #4  
 
Join Date: Mar 2007
Location: WAS via RDU, FLL, PHL and TYO
Programs: UA Gold, Hilton Dia, Radisson Gold, Hertz 5*
Posts: 3,875
I can't help but think that with all the purchasing going on prior to the tax hike, they will have to slash prices in order to keep moving inventory once the higher tax comes into effect.
joejones is offline  
Old Feb 20, 14, 9:14 pm
  #5  
 
Join Date: Mar 2005
Programs: UA MP
Posts: 1,641
Originally Posted by joejones View Post
I can't help but think that with all the purchasing going on prior to the tax hike, they will have to slash prices in order to keep moving inventory once the higher tax comes into effect.
They'll probably keep the displayed price the same, or even lower it a bit (as stores no longer have to display prices with tax after April 1st).
acregal is offline  
Old Feb 20, 14, 10:45 pm
  #6  
 
Join Date: Mar 2007
Location: WAS via RDU, FLL, PHL and TYO
Programs: UA Gold, Hilton Dia, Radisson Gold, Hertz 5*
Posts: 3,875
Originally Posted by acregal View Post
They'll probably keep the displayed price the same, or even lower it a bit (as stores no longer have to display prices with tax after April 1st).
Supposedly, that's only a temporary rule and stores are not supposed to take advantage of it except as a transitional measure (so that they don't have to re-label everything twice, or worry about inadvertent false advertising). After the increase to 10% goes into effect, the law will sunset and we should go back to a world of pricing with tax included.
joejones is offline  
Old Feb 21, 14, 12:24 am
  #7  
 
Join Date: Sep 2003
Location: Thanks for the Memories !!!
Posts: 9,892
I am sure there was a plunge in consumption after it went from 3%-5%.....
Q Shoe Guy is offline  
Old Feb 22, 14, 11:06 pm
  #8  
Original Poster
 
Join Date: Feb 2008
Location: Kobe, Japan
Programs: Bonvoy Platinum, IHG Platinum
Posts: 625
Originally Posted by TMKTakot View Post
Big ticket items. If you were thinking about holding off that new car/boat/house/land/TV/trip-of-a-lifetime do it now, or pre-order that sucker. If you run some sort of side business it might be practical to pre-purchase supplies. Same goes for personal non-perishables. All I got.
I did order a car and built a carport.
Will probably drop a grand or two a Costco, but there is only so much room.

I never thought about it before, but I suppose plane tickets might go up...then again there are sites overseas i can buy from.

I was trying to think of a way to buy gift certs, but unless i am mistaken there is no savings to be had there once prices rise.
JapanFlyerT is offline  
Old Feb 23, 14, 8:12 am
  #9  
FlyerTalk Evangelist
 
Join Date: Jul 2011
Programs: Hyatt Globalist, SEIBU PRINCE CLUB Platinum, Marriott Gold, Cocos Gold
Posts: 17,287
Prices in general will probably rise more than 3%.

The QB cuts store, which has been holding its haircuts at 1000 yen for many years, will raise its price to 1080 from April 1st.

Similarly, I doubt that 100 yen stores will resist the chance to become 110 yen stores going forward.

Personally, a 3% raise isn't enough to effect my buying one way or the other. I am not rushing out to buy things on a speculative basis, as I have too much junk in my house as it is already.

P.S. All hotel rooms will carry the extra tax from April 1st onward, and you will be charged even if you booked and prepaid for the room before that date.
hailstorm is offline  
Old Feb 25, 14, 3:31 am
  #10  
 
Join Date: Jun 2006
Location: KIX, UKB, YVR
Programs: AC
Posts: 2,326
Originally Posted by JapanFlyerT View Post
Built a carport.
We are trying to just do this but about impossible to find a contractor that has the time to squeeze us in.

The best we got was a contractor who promises to eat the tax difference if we are willing to sign a contract now.
Taiwaned is online now  
Old Feb 25, 14, 10:39 am
  #11  
 
Join Date: May 2008
Location: Northern Italian Lakes
Programs: BA, *A, Hertz Goldstar, Mucci wannabee, Waitrose, safari Oleg
Posts: 1,545
I was surprised at how cheap some items of consumer electronics were in Japanese department stores when I visited there last year. The combination of exchange rate and store offers really made them cheap. And you don't have the worry of wondering whether you have a genuine or counterfeit item like you do have in Bangkok....
h15t0r1an is offline  
Old Feb 26, 14, 11:11 am
  #12  
 
Join Date: Aug 2008
Location: トロント
Programs: AC E50K, Accor , ANA, Avios
Posts: 4,512
Originally Posted by h15t0r1an View Post
I was surprised at how cheap some items of consumer electronics were in Japanese department stores when I visited there last year. The combination of exchange rate and store offers really made them cheap. And you don't have the worry of wondering whether you have a genuine or counterfeit item like you do have in Bangkok....
I am generally surprised the other way. Most consudmer electronics I see in Japan are more expensive thant he same purchase in Canada
mapleg is offline  
Old Feb 26, 14, 12:31 pm
  #13  
 
Join Date: Jun 2005
Location: LHR, NRT
Programs: HH, BD
Posts: 8,819
Originally Posted by mapleg View Post
I am generally surprised the other way. Most consudmer electronics I see in Japan are more expensive thant he same purchase in Canada
Presumably the OP is comparing prices with Italy.
jib71 is offline  
Old Feb 26, 14, 3:29 pm
  #14  
FlyerTalk Evangelist
 
Join Date: Jul 2011
Programs: Hyatt Globalist, SEIBU PRINCE CLUB Platinum, Marriott Gold, Cocos Gold
Posts: 17,287
Originally Posted by jib71 View Post
Presumably the OP is comparing prices with Italy.
Where the sales tax is over 20%....
hailstorm is offline  
Old Feb 28, 14, 3:29 am
  #15  
 
Join Date: Sep 2003
Location: Thanks for the Memories !!!
Posts: 9,892
Exclamation Think Corporation (Gold's Gym) 3% Gouge

At the Gold's Gym today at checkin the "nice" young person at the front desk happens to mention that on my pre-paid 1 year gym membership that they will have to collect the 3% for the remaining months of my pre-paid plan. Totally illogical, and most definitely a gouge, although the young women at the counter assured me that all the money would be going to the GOJ ! One of the "elder" gentlemen in locker mentioned that he was not too impressed and was going to protest !
Q Shoe Guy is offline  

Thread Tools
Search this Thread
Search Engine: