Tax revenue: Japan has a different kind of alcohol problem – economy

Japan has a drinking problem. It’s not, as one might think, about excessive consumption in games like Beer Pong, Rage Cage, Flunky Ball and whatever other drinking games are called. Mankind has always been inventive when it comes to intoxicating yourself. No, Japan has a different problem, and as so often in these times, it is related to the corona pandemic. The country’s youth have practically given up socializing because of the restrictions imposed by the plague. And because drinking alone isn’t that much fun, alcohol consumption also fell sharply.

Alcohol isn’t cool anymore, health awareness is. At the same time, the older generation, which was still strong at glass, is retiring. 29 percent of the Japanese are over 65 years old. 25 years ago the world was a completely different one, a better one, at least according to the Japanese tax authority NTA. At that time, the Japanese still drunk an average of 100 liters of wine per year and nose. Today’s boys, on the other hand, only managed 75 liters in 2020, which corresponds to around six bottles of wine per month.

But what is good for public health hurts the state coffers in this case: Ten years ago, the alcohol tax still accounted for three percent of total tax revenue. In 2020, on the other hand, it was only 1.7 percent. Revenue fell by 110 billion yen (about 800 million euros) in the first year of the pandemic. This is clearly noticeable in the Japanese national budget. It already has a deficit of 48 billion yen.

The Japanese government has therefore set itself the goal of promoting alcohol consumption. Under the motto “Sake Viva!” 20-38 year olds can suggest new products, designs, sales methods and other ideas. It is hoped in the government that they might then bring back the desire to drink. Proposals will now be accepted until September 9th. On November 10 – after apparently extensive consultation – the winners are to be announced.

Elsewhere, however, attempts are being made with numerous public campaigns to reduce alcohol consumption, particularly among young people. That is also necessary. In Germany, for example, young people drink their first beer at an average age of 13.8. And from the age of 15, they even consume 10.2 liters of pure alcohol a year.

The fact that its own government is encouraging alcohol consumption, while the rest of the world is warning of its consequences, causes the Japanese Ministry of Health to shake their heads. One hopes, it says with a portion of Japanese understatement, that the campaign will also remind people to only consume alcohol in “reasonable amounts”.

Another campaign shows that the government in Tokyo does not seem to be in complete agreement as to whether drinking more or less is better for the country. It goes back to the “Act Against the Dangers of Alcohol Consumption”. It also envisages an action week in which warnings about alcohol abuse and its consequences should be given. Your start date: November 10th.

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