25.7% in Japan to use food tax cut benefits for savings, survey finds
Regarding how the tax cut might affect their consumer behavior, 49.7% or people surveyed said they would not change their spending plans.
A survey conducted by Japanese research company Intage found that 25.7% of respondents planned to use the money saved from a proposed decrease in the consumption tax on food for savings, making it the most popular choice among the options presented. The survey, which was carried out from August 28 to September 1 and included 3,052 valid responses from individuals aged 15 to 79, also revealed that 15.1% of respondents intended to use the savings for travel and leisure activities, 10.4% for investment, and 9.3% for health-related expenses. Other uses for the saved money included spending on hobbies (8.4%) and daily necessities (7.6%).
When asked about the potential impact of the tax cut on their consumer behavior, 49.7% of respondents stated that they would not alter their spending plans, indicating that they would remain cautious with their spending even after the tax cut. Meanwhile, 32.6% of respondents said they would postpone purchases until after the tax cut, while 25.8% intended to make bulk purchases following the tax reduction.
An Intage official explained that consumers appear to be mindful of saving money and concerned about the future, leading them to prefer putting the saved funds aside for now. However, some individuals expressed a desire to spend the saved money on travel and hobbies to enhance their lives or treat themselves.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
