Japan's restaurant industry opposes the government's proposal to implement a zero consumption tax on food for two years, arguing it could harm their business by driving customers to grocery stores.
On December 25, the Japan Food Service Association (JFSA), representing the restaurant industry, issued a statement opposing the government's plan to implement a zero consumption tax on food for a duration of two years. Their primary concern is that if food items purchased from supermarkets and convenience stores are exempted from the consumption tax while restaurant meals remain subject to the current 10% tax, this disparity would lead to decreased patronage in dining establishments, significantly impacting their economic viability. The JFSA argues that the government's approach lacks immediate effectiveness in addressing inflation and could instead exacerbate the challenges faced by restaurants.
Kyoko Kishimoto, president of RD Company, which operates the 'Gatten Sushi' chain, held a press conference in Tokyo, where she expressed the association's opposition and called for cautious consideration from the government. Kishimoto emphasized that if a zero tax rate on food is to be implemented, it should also apply to restaurant meals, ensuring a level playing field for all food service entities. Additionally, the association has demanded a comprehensive review of the already established reduced tax rates for food products to ensure fairness across the industry.
This statement comes amid ongoing discussions about inflation and economic recovery in Japan, highlighting the tension between various sectors impacted by tax policies. The restaurant industry's push for equity in tax treatment underscores the complexities and challenges of fiscal policy in a country struggling with rising prices and economic pressures, making it essential for the government to navigate these considerations carefully as it moves forward with its plans.
