Motohiro Kurosawa of Fri-tei, a breaded pork cutlet restaurant in Tokyo, has str...
TOKYO - Motohiro Kurosawa of Fri-tei, a breaded pork cutlet restaurant in Tokyo, has struggled to adjust to steps meant to ease the pain of the tax increase that kicked in on Tuesday.
But some of the ways the government seeks to ease consumer pain, such as premium shopping vouchers, different tax rates and discounts for cashless payments, are creating burdens for businesses, Kurosawa and others said.“It’s wrong to set two tax rates. Life would be easier if it’s set uniformly,” Kurosawa told Reuters ahead of the increase.
The program, together with the reduced tax rate, are expected to spur a price competition among businesses that lack bargaining power with customers accustomed to decades of deflation. The government has set aside 2 trillion yen for such stimulus.
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