Gov't plans 5% rebates for some cashless payments after tax hike

rebate

OK good luck administering that. I frankly can’t be bothered “responding” to this ridiculous, bureacractic nonsense.

The rebate will be handed out in the form of reward points rather than cash, and will not apply to payments made at large store chains

Gawd. So much bureaucracy.

The LDP and Komeito have taken a simple flat rate tax increase for the purpose of ever so slightly plugging the fiscal deficit, and look at the butchered job they have done of it.

Can’t the administration do anything in a S.I.M.P.L.E manner?

.... then just take away the number you first thought of and.......

What Japan should have is debit cards, but its banks are still in the stone age.

The cash card my bank issued me with well over a decade ago also has a credit card and a debit card function. I've never used the debit card, because I tend to keep as little money as possible in my current account. A credit card and pre-paid card, with cash when necessary (less necessary these days - today I did a full week's-worth of shopping in several shops with not a single coin or banknote changing hands) makes budgeting a lot easier.

If enough people say no to ‘reward points’ then our freedom will endure if not then....

“The government plans to set aside a total of around 2 trillion yen in the fiscal 2019 budget for such measures, which also include shopping vouchers with enhanced purchasing power for households with low income or children under 2 years old.”

Good luck trying to ensure that’s not rorted! You can bet that to avoid paying the 10%, there’ll be a corresponding increase in proxy purchases by those who are under the limit.

There is no doubt this resulted from scribbling on a napkin during a night of heavy drinking.

Just lip service to make it seem like they are trying to ease the burden of the tax hike. It’s not going to make a brass razoo of difference to those who will feel the impact most.

Make simple things not simpler, that is Abe.

30% don’t even have a cash register... just a calculator and a box.

and theres a reson for that, cash is king when it comes to under declaring sales, goods bought in cash and sold in cash leave no paper trail

Cleo's right that this is a wealth transfer from poor to better off. Credit card companies also charge businesses a commission that is larger for small businesses with no bargaining power. Some businesses, petrol stations for example, still charge more for credit card payments. On kakaku.com, you'll see that often the cheapest place to buy some gizmo or appliance won't accept a cc payment. If you want your cc points, you'll have to pay more to get em.

What Japan should have is debit cards, but its banks are still in the stone age.

This is getting ridiculous. The tax will go up by 2% and they will give a 5% rebate in points, leaving the government much worse off than before. If we buy food, for which the tax rate will remain at 8%, will we also get 5% points? What if a purchase is part food and part other things? Credit card statements do not break down purchases into food and non-food items so there is no way to distinguish the two.

Prediction: it ain’t going to do much. Too many conditions.

OK, so take 10% from everybody including the very poor, and give 5% back to those prosperous enough to have a credit card or cards. Makes sense. Not.

government spending will simply more than double from its original plan and further erode Japan's fiscal health

What could possibly go wrong?

reward points rather than cash

To be cashed in how?

I have to use cash... I would rather free flyer miles on my credit card. I have a great card.

90% of the small shops and restaurants in my area only take cash... 30% don’t even have a cash register... just a calculator and a box.

... and this is in Chuo-ku Tokyo. A stones throw from major elite stores.