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JAPAN: Suntory details plans for VAT rise

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Suntory has set out its plans for how its soft drinks business will handle an increase in Japan’s national sales tax rate next month.

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As previously announced, from 1 April, the country’s VAT rate will rise from 5% to 8%. Suntory said today (3 March) that the increase will be added  “across all channels to the wholesale base price” of its products. It said the move will be in "accordance to the Japanese government guidelines and the previously-announced soft drink business standard practices set by ... Japan Soft Drink Association"

The company is giving advice to vending machine operators on what soft drinks it recommends raising the prices on and those where the prices should stay the same.

Suntory will suggest that the prices of some of its products from vending machines are raised by JYN0.10. 

In December, analysts at CLSA suggested the tax rise could be an opportunity rather than a threat for Japan's CSD producers

The tax covers all transactions, but the rate on food and “basic household necessities” could reportedly be reduced.

A further tax rise - to 10% - is expected in October next year.


Sectors: Soft drinks

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