In response to the coming increase in the consumption tax, companies have set about revising their computer systems and business strategies in preparation for a smooth transition. While many businesses are expected to require only simple updates to their computer programs, others with complex systems face considerable challenges before the rate starts going up in 2014.
And companies dealing with high-price items such as homes and vehicles are already lobbying the government to take steps to minimize the tax hike's negative impact on their industries. Among those expecting a rough road is East Japan Railway Co., operator of vast train network encompassing the Kanto and Tohoku regions.
In addition to revising its transportation-related systems, JR East will also have to wrestle with how the change will impact the Suica electronic fare card. Besides covering train and bus fares, the card serves as electronic money. It can be used at a wide range of places outside the JR system, such as convenience stores, restaurants and vending machines.