Multilingual Living Information

ENL02-2

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National tax

2-2 Consumption tax

Consumption tax is a tax levied on a variety of goods, such as the items purchased in supermarkets, and on services. The consumption tax rate is 5% (as of March 2007). Prices displayed on goods in Japan are prices plus tax, and consumption tax is included in the price of goods and services (a system known as tax-inclusive pricing).
However, the following transactions are exempt from consumption tax:

• Rent for residences
• Government administrative costs
• Long-term care insurance services, social welfare businesses etc.

• Certain school tuition fees, school enrollment fees, school entrance examination fees, facility maintenance fees etc.

<<2-1 Income tax (4) Final returns

3 Local tax>>