The national government approved a proposal to up the consumption tax to 8% by next April, and companies in Kyushu have begun making preparations ahead of the tax hike. However, signs of recovery in the regional economy are weak, and some business owners are concerned the tax increase will dampen consumer spending. Nagasaki-based noodle outlet Ringer Hut said it would no longer be able to continue its popular “one coin” (￥500) dishes if it passed on the 3% tax bump to its consumers. “We might actually end up lowering prices,” said a company official. Meanwhile, Iwataya-Mitsukoshi, where sales of luxury goods have increased on the back of high stock prices and other factors, says consumers who purchase high value-added products tend to buy them regardless of the price, and it “does not expect this tax increase to have as much effect as previous increases.” The last tax increase, from 3% to 5%, was 17 years ago. Nishinippon Shimbun, 10/2
