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  5. METI Holds Ad-hoc Meeting on Measures to Encourage SMEs to Accelerate Preparations for Addressing the New Consumption Tax System

METI Holds Ad-hoc Meeting on Measures to Encourage SMEs to Accelerate Preparations for Addressing the New Consumption Tax System

February 8, 2019

To encourage SMEs to accelerate their preparation for addressing the multiple tax rates under the new consumption tax system that will start in October 2019, the Ministry of Economy, Trade and Industry (METI) has been implementing support measures for such SMEs’ activities, and intensively making efforts to disseminate information on such measures.

As an effort for further encouraging SMEs to accelerate their preparation for addressing the multiple tax rates, METI held an Ad-hoc Meeting on Measures to Encourage SMEs to Accelerate Preparations for Addressing the New Consumption Tax System, bringing together board member-level representatives of major cash register manufacturers and system vendors. At this meeting, participants confirmed that they will further enhance collaboration and accelerate efforts for measures for addressing the multiple tax rates.

1. Outline of the meeting

The new consumption tax system, i.e. the hike of the consumption tax rate (national and local taxes) and the implementation of the reduced tax rate for certain products including foods and beverages will start on October 1, 2019. As the effective date is close at hand, METI and the Small and Medium Enterprise Agency (SMEA) have been calling for expeditious preparations for addressing the new tax system on businesses across Japan through a variety of measures such as subsidies for SMEs for installation of cash registers and developing their computer systems that correspond to the new tax system, and expanding the coverage of the subsidies.

Aiming to further accelerate SMEs’ efforts for preparations, METI held the ad-hoc meeting, bringing together representatives of cash register manufacturers and system vendors which are engaging in installation of cash registers or developing computer systems for SMEs. At the meeting, officials of METI and the Ministry of Finance explained current efforts by the government, the latest information on support measures and other information, and requested the participants to cooperate in the following initiatives so as to encourage SMEs to accelerate their preparation for addressing the new consumption tax system.

  1. Utilization of measures for supporting SMEs and small enterprises for preparation for addressing the new consumption tax system;
  2. Establishment of regime in respective companies for proactive sales of such cash registers or computer systems;
  3. Formulation of infallible support system for SMEs and other customers; and
  4. Collaboration and cooperation with SME associations and other related organizations.

Note: For details, see Reference 1.

2. References

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