Chain store group to OK tax-added price tags if sales levy goes up

JIJI

The Japan Chain Stores Association will allow member stores to show customers not only prices excluding tax but also tax-added prices if the consumption tax is raised next April as planned, sources said.

The association previously clarified its preference to only price tags without tax included, the sources said Tuesday.

Though it still thinks price tags excluding tax are better because they make it clear to consumers how much an item costs and how much is tax, the industry group found it necessary to become flexible about the issue, the sources said.

According to the sources, food superstore chains favor price labels without tax because they want to stress the affordability of their goods. But some retailers of relatively expensive products, such as clothing, have argued that price tags that include tax can better help shoppers understand how much they are paying in total.

In view of such opinions, the association decided to allow labels showing tax-added prices as well as original retail prices for certain product groups.

However, some companies in favor of pricing simplicity may strongly demand that the association, which had urged the government to allow price labels without tax, stick to its original stance, the sources said.

  • Max Erimo

    Of course displaying before tax prices is of no use. Totally what you have to pay is important. It doesn’t matter how much of it is tax. The total amount is what is needed and what most customers expect to see. As a foreigner who has experienced before tax prices only, I was often caught short of money at the register, even though i had calculated as I shopped. All countries I had previously visited, the price you paid at the register is the price displayed on the shelf. Let’s get with the times…