Brewers suffering from the drop-off in bar and restaurant traffic are about to get some relief, thanks to long-awaited revisions to the liquor tax system that kick in this week.
Until now, the nation has had a complex taxation system for beer based on malt content instead of alcohol, where beer with more malt is taxed and priced higher. As of Thursday, the government is starting to bring taxes of different varieties of alcoholic products more in line with each other, which should make some beers more affordable for consumers.
The changes come at a dire time for the country’s beer-makers including Asahi Group Holdings and Kirin Holdings. The coronavirus pandemic has wiped out a sizable source of revenue for the brewers and their global rivals as people spend less time eating and drinking out. Almost half of Asahi’s best-selling Super Dry was sold through commercial channels to restaurants — where it doesn’t have to compete with lower-malt or "new genre” beers.