Japan’s youth are encouraged to drink more after a drop in tax revenue from alcoholic drinks.
Japan’s government launched a nationwide competition in an attempt to revive the industry that has been declining due to lifestyle choices, demographic changes and the pandemic.
Sake Viva is the national tax agency of the country. Campaign is open to all ages between 20 and 39. It asks for ideas to create new products and designs to stimulate young demand.
This includes the boosting of Japanese alcoholic beverages like sake, beer, whiskey, wine, or beer.
According to the campaign website of the tax authority, “The domestic alcohol beverage market is shrinking because of demographic changes such as declining birth rates and ageing populations and lifestyle changes due the impact from the new coronavirus virus infection.”
“We will be appealing to young people through this project by asking them to submit their business plans. We will also revitalise and promote the Japanese alcoholic beverage industry.”
According to The Japan Times, taxes on alcohol products made up 5% of total revenue in 1980. However, they have declined to 1.7% in 2020.
A tax agency official told the newspaper that while working remotely made some progress during the COVID-19 crisis many people have begun to question whether it is necessary to continue drinking with their colleagues in order to deepen communication.
They added that “if the “new normal” takes root, it will be an additional headwind to tax revenue.”