The Ministry of Economy, Trade and Industry set up an office Wednesday to ensure small firms can raise the prices of their products supplied to larger companies after the 5 percent sales tax is raised to 8 percent in April, as decided by Prime Minister Shinzo Abe on Tuesday.
The office will be on the lookout for large businesses using their dominant positions to reject smaller suppliers’ moves to pass the tax hike costs on to their product prices.
It is important to win public acceptance of the tax increase by putting into place measures to ensure fairness, METI chief Toshimitsu Motegi told some 250 inspectors recruited for the office from various industries.
“I want you to fully perform your duties by utilizing your experience,” he said.
A special law took effect Tuesday aimed at ensuring the smooth transfer of costs from the tax hike. The law prohibits companies from forcing weaker entities to eat the tax increase.