Japanese people between the ages of 20 and 39 are apparently too sober, but sake is said to have become popular again among them. The NTA tax authority’s ideas contest lasts until September 9, in which participants are invited to think of “new products and designs” and promote the drink at home. Possible sales methods on Metaverse are also welcome, as reported by news site JiJi.com and various international media outlets.
“By inviting young people to come up with their own business ideas with this project, we will draw them into the development and promotion of Japanese alcoholic beverages while reviving the industry,” describes the campaign’s website.
chronically in debt
According to the NTA, alcohol consumption in Japan has dropped from an average of 100 liters per person per year (1995) to around 75 liters (2020). Alcohol tax revenue fell in the same proportion. In 1980 they represented five percent, in 2011 they were three and in 2020 only 1.7 percent.
dangers of alcohol
According to the World Health Organization (WHO), alcohol abuse can be the cause of more than 200 clinical conditions. Three million people die each year from binge drinking (equivalent to 5.3% of all causes of death). Furthermore, alcohol abuse leads to social and economic harm to individuals and society.
The budget deficit, on the other hand, has continued to increase chronically in recent years for a variety of reasons. Japan’s military build-up has grown on deteriorating ties with China and North Korea, along with multibillion-dollar stimulus packages to cushion the economic fallout from the pandemic. By March 2023, spending will be almost €830 billion. Earlier this year, the International Monetary Fund asked the country to reduce pandemic aid because the national debt was already 222.8% of economic output before the CoV crisis.
The population is also aging and shrinking at record speed: this year the population is 726,000 fewer than the year before – the strongest decline since comparable data was collected. This is also reflected in the budget.
Pandemic raised awareness
According to JiJi.com, the younger generation has increased their health awareness during the pandemic and, in some cases, has given up alcohol. “According to a private research institute, about half of young people do not drink daily,” he says.
“To some extent, remote work has evolved during the pandemic, and many are wondering whether to break the habit of drinking alcohol with co-workers,” the Japan Times said recently, citing a tax official. “If the ‘new normal’ takes root, it will mean an additional headwind for tax revenues.” The closing of many bars during lockdowns also fostered development.
mixed reactions
The Sake Viva! it is not the first attempt to increase the sector’s revenues. A few months ago, the tax administration launched the “Enjoy Sake!” project. These were promotional events for the beverage companies. However, the project is unlikely to have been very fruitful, which is why efforts are being stepped up again. The finalists of the new ideas contest will be invited to a ceremony in Tokyo in November, and the tax authorities want to support the implementation of the ideas.
According to the BBC, there was a mixed reaction to the campaign in Japanese media: both criticism for promoting an unhealthy addiction and encouraging participation. The country’s Ministry of Health highlighted that it did not participate in “Sake Viva!”, but cherished the pious wish that importance also be given to the health aspect. Thus, the selected idea should also refer to the dangers of alcohol consumption, if possible.