Do the right thing: this supermarket tells customers that all prices indicated include the consumption tax
A quick survey by the Ministry of Internal Affairs and Communiciations has revealed that the average price of goods and services, excluding “fresh produce,” since the consumption tax hike went into effect April 1 has increased 2.7 percent, which sounds about right since the hike itself was 3 percent. When the consumer price index is announced next month, the ministry projects that it will be 3 percent higher than it was a year ago, so everything is going as planned.
Of course, that’s the word from on high. Here in the real world, meaning in the stores where we all shop, the situation isn’t that clear-cut.
Some consumers will notice that prices have gone up much more than what they would perceive as 3 percent, while some prices have actually gone down, and many prices have stayed the same.
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Screen shot of website offering financial advice to college students
Asahi Shimbun recently reported that more and more university students are trying to save money even before they graduate and get a job. The article conjectures that young people are anxious about the future and uncertain about their job prospects so they think they have to be financially prepared.
One 19-year-old Keio University sophomore, who commutes to school from his parents’ home in Tokyo, managed to save ¥1.8 million over the course of a year. He works part-time 3 or 4 days a week in an office, sometimes until midnight, and receives ¥250,000 a month, which is actually quite good for part-time work at that age. He saves half his pay, and the rest goes to his ¥1 million a year tuition, which he pays himself. He spends about ¥30,000 a month on food, ¥10,000 on “music activities” (he’s in a band), ¥10,000 on clothing (“I buy cheap clothes”) and “only” ¥10,000 a month for his phone (because he uses Line). His sole major outside expense was a snowboarding excursion last winter that cost him ¥100,000.
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Stuck in the middle: Australia cheese competing in the dairy case with New Zealand and Switzerland
Though its participation in the Trans-Pacific Partnership seems to be dead in the water for the time being, last week Japan signed an Economic Partnership Agreement (EPA) with Australia that could revive Japan’s TPP hopes, but before we get to who lost and who won in the Australian deal, let’s talk about cheese.
Personally, we were looking forward to some sort or tariff reduction on Aussie cheese, not because we prefer Aussie cheese over other kinds, but because all so-called natural cheese — meaning not processed — is expensive in Japan owing to the dairy farmers lobby and their demand for high tariffs on imported milk products.
Japan is close to an EPA with the European Union, but the cheese tariff will likely remain. The Australian EPA only addresses natural cheese that is exported to Japan for purposes of being blended with other ingredients to make processed cheese. The tariff on such cheeses will be reduced from 40 to 0 percent over time, but the tariff on natural cheese that is sold to the public in stores will remain at 29.8 percent, so no cheap cheddar right away.
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Preemptive stride: If you do have metabolic syndrome you can guess what the doctor will tell you to do
Though there’s a minority opinion to the contrary, conventional wisdom says that regular health checkups are the only way to prevent the development of major illnesses, so, logically, they should also help reduce healthcare costs in the long run. This is the concept behind tokutei kenko kensa, or “special health checkups,” that were started six years ago by the Ministry of Health, Labor and Welfare. The main target is metabolic syndrome, the inevitable gain in fat that accompanies midddle age and which, unchecked, is thought to be the gateway to many so-called lifestyle diseases, like diabetes.
The idea is that local governments would provide checkups to insured residents between the ages of 40 and 74 with national insurance, which, in principle, doesn’t cover regular general health checkups since Japan’s public health system is designed to treat existing problems. If the special checkups uncover unhealthy situations, then the individuals are advised with regard to better diets or exercise regimens, or even pharmaceutical assistance, so as to head off costly treatment down the road, like, for instance, dialysis, which can cost on average ¥5 million a year, most of which ends up being paid for by the government, both local and central.
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Public daycare center closed for the day
A few weeks ago news outlets were all over a story about the death of an infant who had been placed in the care of a young freelance babysitter. The media was quick to blame the mother, at least by implication, since she had found the man through an Internet portal site that matched people who needed babysitters with people who provided such services. Many of these providers seem to be unlicensed, but babysitting as a job description is relatively new to Japan.
What seemed unusual in this case — though it’s actually quite common — is that the two boys the mother left with the man were watched at the man’s apartment in Saitama Prefecture, rather than at the woman’s residence in Yokohama, which is normally the way babysitting works. In the woman’s defense, some media pointed out that she had used the man as a babysitter previously and didn’t trust him, but because he used a different name this time she wasn’t aware she was leaving her children in his care.
However irresponsible the woman was in this situation, the fact is that there is an increasing number of parents who rely on such services. The Internet portal site that the woman used has 10,000 registered users and 6,000 registered sitters. The paucity of daycare services in Japan is a well-covered issue, and some parents can’t wait for the government or the private sector to rectify the situation, especially if they have infants and toddlers, which conventional daycare centers don’t usually accept anyway.
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The ones: You’ll be seeing more of these guys in the near future
Last month the national mint intensified production of ¥1 coins in anticipation of the consumption tax hike on April 1. The Ministry of Finance wants 26 million of them manufactured by the end of March, and then another 160 million after the start of the new fiscal year. Once the consumption tax goes up from 5 to 8 percent, retailers will need more small change.
With a 5 percent tax, it’s relatively easy for stores to limit their use of coins since they can set prices based on multiples of 5. Maybe it’s possible to do that with multiples of 8, too, but not right away, and many fear they will not have enough ¥1 coins on hand when the tax hike goes into effect. An employee of the nationwide ¥100 shop CanDo told Asahi Shimbun, “Altough we sometimes receive ¥1 coins in payment from customers, we don’t recycle them as change to other customers, but now we’re trying to hoard as many as possible.”
If the consumption tax increase is an inconvenience to retailers, it’s even more of a pain in the neck for the government, since it costs between ¥2 and ¥3 to make a ¥1 coin, which is 100 percent aluminum. It’s the first time the mint has produced ¥1 coins on anything approaching this scale in four years. It will also produce an extra 100 million ¥5 coins, just to be safe. The government doesn’t want to relive the small change panic that happened in 1989, when the 3 percent consumption tax was first introduced.
CONTINUE READING about the consumption tax hike's effect on e-money →
Hello stranger: Pay phone in residential area of Sakae, Chiba Prefecture
Last December, during its end-of-quarter news conference, NTT announced that it would shorten the length of time for a basic call on public telephones when the consumption tax is raised from 5 to 8 percent in April. Since pay phones don’t give change and NTT discontinued its IC card service in 2006, it would have been difficult to pass the extra tax levy on to users, so the more logical scheme was to make a ¥10 call shorter. As it stands, ¥10 will get you 60 seconds of connection to a number within the same calling exchange during the day. After April it will be shortened to something like 58 seconds.
At the time it wasn’t exactly breaking news, and for obvious reasons. Who uses pay phones any more? As long as you have a cell phone you likely won’t even notice that pay phones still exist, but they do. According to a government white paper on telecommunications that came out last year and cited on the Sarayomi blog, as of March 2013 there were 210,000 pay phones in Japan. In 2002 there were 680,000. (The peak year was 1986, when there were 910,000.) That means two-thirds disappeared over an 11-year period.
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