A Washington Post report highlighted the “unusual solution” that Japanese officials have found to their financial problems, and according to the newspaper report, is to encourage young Japanese to consume more alcohol.
Amid concern regarding the demographic transition and the sharp decline in revenue from the so-called “sin tax”, a competition sponsored by the tax agency, entitled “Sake Viva”, called on people between the ages of 20 and 39 to develop “business plans” that help revive Japan’s drinking culture, which has long been an integral part of corporate life in the East Asian country.
The Corona pandemic has exacerbated the decline in alcohol consumption in Japan, as the population was eating and drinking much less than usual during the pandemic. Although Japan has never gone into a full lockdown, an emergency was declared in Tokyo, and restrictions were imposed that included forcing restaurants and bars to close early. At one stage of the epidemic, the sale of alcohol was prohibited in restaurants, and its sale was limited to certain times during the day, according to the newspaper.
Even home consumption of alcohol has been lower than usual during the pandemic.
Liquor tax revenue fell from more than 813 million euros in 2019, to regarding 8.4 billion euros in fiscal 2020, according to government data. It was the biggest drop in alcoholic families in three decades, and has caused concern for the government, which faces widespread financial challenges.
This year, the Japanese economy achieved growth in the three months to June, according to official data in the middle of this month, following the government lifted the Covid restrictions that it had imposed on businesses.
The world’s third largest economy grew by 0.5 percent on a quarterly basis thanks to increased consumption and investment, but the rise was less than market expectations of 0.7 percent.
While the country has not imposed any quarantine measures during the pandemic period, the government in March canceled virus-related restrictions that specifically targeted business hours and stores.
