Industry concerned over possible tax hike on new beerlike drinks
Daily Gomiuri
Major beer companies are currently introducing a so-called fourth-category beer, creating a new competitive market for the beerlike alcoholic beverage.
While so-called third-category beer contains no malt, fourth-category beer is a mixture of low-malt happoshu beer and barley-based spirit, and is categorized as a liqueur under the Liquor Tax Law.
The new product is priced relatively low by taking advantage of a blind spot in the law. However, beer companies are afraid the Finance Ministry might raise the tax if the product proves popular.
Although the new beverage uses less than 50 percent malt--similar to happoshu low-malt beer--it will be taxed about 50 percent less under the Liquor Tax Law, as it contains barley-based spirits. Previously, beer companies have played a protracted tax-related game of cat and mouse with the Finance Ministry after introducing new products, such as low-malt beers and third-category beers. However, the ministry eventually increased taxes for the products. Some companies are concerned the same thing may happen with the new beerlike drinks....more...
Other threads dealing with lousy beer-like stuff can be found here, here, and here.
