Ministry of Economy, Trade and Industry
Font Size Change
S
M
L

Small and Medium Enterprise AgencyAnnouncement of METI’s Efforts Regarding the Measures for Securing Smooth and Appropriate Transfer of Consumption Tax as of the End of July 2014

Following the rise in consumption tax rate to 8% in April 2014, the Ministry of Economy, Trade and Industry (METI) has been conducting a variety of measures for ensuring the smooth and appropriate transfer of consumption tax. METI hereby announces the compiled results of the specific measures undertaken for that purpose as of the end of July 2014.

1. Outline

Following the rise in consumption tax rate to 8% in April 2014, jointly with the Japan Fair Trade Commission (JFTC), METI has enhanced efforts for monitoring and policing violations as well as raising public awareness and providing consultation services, aiming to prevent refusals to pay transferred tax, and swiftly correcting any violations.

METI hereby announces the compiled results of the specific measures undertaken for that purpose as of the end of July 2014.

2. Results of the efforts

1) Enhanced monitoring and policing violations

METI and JFTC have been dispatching inspectors to monitor buyers’ refusals to pay transferred tax. Concerning the violations, as of the end of July, METI and JFTC provided instruction to a total of 1,287 businesses, and sent recommendations to and disclosed the names of six businesses (figures are for total cases METI and JFTC dealt with). METI and JFTC will continue to strictly address such violations.

In April, METI instituted a monthly questionnaire survey for businesses concerning the current situation of consumption tax transfer, aiming to periodically ascertain the situation. In the written survey in July, 83.4% of the target businesses answered that all of the tax was transferred for transactions between businesses, followed by 74.5% for transactions between businesses and consumers. Meanwhile, 4.0% of the target businesses answered that the tax was not transferred at all for transactions between businesses, and 5.2% answered the same for those between businesses and consumers.

METI is now conducting a large-scale written survey targeting SMEs and small enterprises, aiming to collect information concerning refusals to pay transferred consumption tax. In addition, it is also distributing survey sheets to businesses through commerce and industry associations, chambers of commerce and industry, prefectural federations of small business associations, and other entities so as to broadly disseminate the sheets even to such businesses to which it is difficult for METI to send the sheets directly.

METI is also conducting a written survey for large retailers and large enterprises with capital of 100 million yen or more on the buyers’ side of transactions, concerning the refusal of payment of transferred consumption tax to contracting companies.

Furthermore, METI has been dispatching the inspectors patrol to certain areas as part of a proactive approach to support any subcontracting SMEs and small enterprises. Specifically, it dispatched the inspectors to supermarkets and drugstores to provide 12,909 consultation services, and has been establishing a human network with management consultants in commerce and industry associations and chambers of commerce and industry, visiting 2,138 sites as of the end of July. In addition, the inspectors visited 404 credit unions and credit cooperatives as of the end of July.

As an enhanced instruction measure targeting buyers, as of the end of July, METI held 97 explanatory meetings so as to fully inform related industry associations and businesses about the revised guidelines for promoting fair subcontracting practices, and it will continue to hold such meetings for raising public awareness.

2) Further raising public awareness and providing consultation services

In July, the Small and Medium Enterprise Agency (SMEA) opened an online consultation counter for receiving public petitions with full security considerations. Please take advantage of this website for consultation services concerning tax transfer. SMEA also continues the existing telephone consultation services.
Consultation counter URL: https://www.shinkoku.go.jp/shinkoku/External Site Link (in Japanese)

Four SME associations also opened 2,328 consultation counters at to provide the public with face-to-face consultation services. As of the end of June, about 880,000 cases were accepted.

As of the end of June, 12,568 seminars concerning the measures for securing smooth and appropriate tax transfer were held at SME associations and government-approved support organizations, with about 270,000 people attending.

METI has prepared about 1.09 million copies of guides and manuals to help the public easily understand such measures, and has distributed them to businesses across Japan through SME associations and government-approved support organizations.

METI has produced about 180,000 posters, aiming to inform the public of the increased tax burden, and has distributed them to businesses across Japan through SME associations and industry associations.

METI also held 49 events, titled “Let’s talk about our lives and consumption tax at shopping arcades,” before the end of May to raise public and consumer awareness about the tax hike across Japan.

For further details, see the Japanese language press release.

Release Date

August 7, 2014

Division in Charge

Fair Trade Division, Business Environment Department, SMEA
Competition Enhancement Office, Economic and Industrial Policy Bureau, METI

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.