Tokyo: In Japan consumption in bars and restaurants inevitably declined during the pandemic, with after-work drinking spots forced to close early and many people reluctant to change dining out, there is also a fear that people are now no longer in the habit of going out, and have become accustomed to staying at home and drinking less.
That sort of single-year decline will be causing alarm bells to ring in Japan’s Finance Ministry, which is already wrestling with the largest national debt in the world – some 263 percent of GDP at the end of 2021 and surpassing Y10 million (US$74,025) per capita for the first time.
The National Tax Agency (NTA) is running a campaign targeted at people aged between 20 and 39, inviting them to propose ways in which drinking can be made more popular for that demographic, Jiji Press reported.
The agency has launched the “Sake Viva!” competition for the best ideas for new products and alternative opportunities for opening a can or bottle, such as drinking at home.
The contest winners are due to be announced in early September, with the agency hoping the ideas that emerge from the booze brainstorming session help increase sales once more and, of course, increase the government’s tax income.
The domestic drinks industry has welcomed the campaign, pointing out that consumption of alcoholic drinks in Japan has typically gone through fads of popularity but has been in general decline for several decades.
According to the NTA, the average Japanese drank 100 liters of alcohol in 1995, but only 75 liters in 2020.
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Tax income from alcohol has also declined, shrinking from 5 percent of total tax income in 1980 to just 1.7 percent in 2020. The government’s income through taxation on alcohol in fiscal 2020 came to Y1.1 trillion (US$8.14 billion), down by Y110 billion (US$814.21 million).
That sort of single-year decline will be causing alarm bells to ring in Japan’s Finance Ministry, which is already wrestling with the largest national debt in the world – some 263 percent of GDP at the end of 2021 and surpassing Y10 million (US$74,025) per capita for the first time.
