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Japanese officials concerned about changing demographics and a sharp decline in sin Tax collectors have come up with an unusual solution to their tax problems: encouraging young people to drink more.
“For Viva’s Sake!” – a competition run by the National Tax Agency – calls on people aged 20 to 39 to develop “business plans” to help revitalize Japan’s drinking culture integral part of corporate life in the East Asian nation.
The coronavirus pandemic exacerbated a decade-long decline in Japanese alcohol consumption, with residents eating and drinking out much less than usual. Though Japan never went into full lockdown, a state of emergency was declared in Tokyo, with measures that included telling restaurants and bars to close early. At one point during the pandemic, the sale of alcohol in restaurants was banned, while at other times it was restricted to certain times of the day. While people drank more at home, overall alcohol consumption was lower than normal.
Alcohol tax revenue for fiscal 2020 was about $8.4 billion, down more than $813 million from the previous year, according to government data. That was the biggest drop in three decades — and a cause for concern for a government facing major fiscal challenges.
Alcohol consumption in Japan had fallen by about a third by 2020 from the annual average of 26½ gallons per person in the mid-1990s, according to the country’s tax agency. Meanwhile, sales of soft drinks – which are not subject to similar taxation – have risen in recent years, according to industry figures.
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As in many economically developed places around the world, younger Japanese drink less than older generations. A 2019 Department of Health survey found that 29.4 percent of people in their 20s don’t drink alcohol at all, while 26.5 percent said they rarely drink.
The unorthodox push by bureaucrats to “revive the liquor industry” has drawn a backlash on social media. No major Japanese alcohol producer has publicly expressed its support.
“Young people not drinking is a good thing. Why They Are Addictive,” wrote one user on Twitter in a post that received hundreds of likes. Another wrote: “As long as they can collect taxes I guess people’s health doesn’t matter.”
The competition challenges participants to propose new ways to boost alcohol sales, including the use of artificial intelligence and the use of the metaverse – the virtual universe that combines aspects of digital technologies such as virtual reality and augmented reality. The closing date for entries is September 9th, and the finalists will be invited to a tournament in Tokyo in November.
She is also calling for “new services and promotional methods” to stimulate demand among young people and create products that accommodate lifestyle changes brought about by the pandemic.
The Ministry of Health could not immediately be reached for comment.
Inuma reported from Tokyo.