Decoding 'Tax Excluded': Japan's Latest Price Display Debate on SNS

The keyword "tax excluded" is trending on social media, sparking widespread interest in price displays across various daily purchasing scenarios. Consumers are expressing surprise at product pricing and calling for smarter consumption habits.

In hobby sectors like character goods and games, new products are being continuously announced with "tax excluded" prices. Re-Ment Co., Ltd. introduced "Cinnamoroll's Fluffy Cafe Time" for 1,350 yen (tax excluded) and "Hatsune Miku Series" figures for 1,600 yen (tax excluded), generating buzz among fans. At specialty game stores, special offers like the Nintendo Switch for 9,980 yen (tax excluded) and PlayStation 5 for 69,800 yen (tax excluded) are displayed with "tax excluded" prices, stimulating buying interest.

"Tax excluded" displays are also common for daily necessities and food items. At OK Supermarket, items are advertised with approximately 100 yen off (tax excluded), while Ozeki Supermarket sells strawberries for 299 yen (tax excluded). However, these displays sometimes cause confusion for consumers. One user lamented, "I accidentally bought two toothbrushes priced at 398 yen (tax excluded) next to the 198 yen (tax excluded) ones I usually buy – I'm shocked!" Another post expressed surprise that frozen fried rice, typically 98 yen (tax excluded), had increased to 128 yen (tax excluded). There was even an anecdote about a shopper coughing upon seeing a Spanish mackerel priced at 798 yen (tax excluded), highlighting the psychological impact of tax-excluded pricing.

High-value goods and services also feature "tax excluded" prices. A drone designed for gentle landings is listed at 500,000 yen (tax excluded), and a Mitsubishi truck at 13.5 million yen (tax excluded). Specific prices shared include Kendo 'tare name' embroidery for 3,000 yen (tax excluded) and a quote for a Navish faucet at 220,000 yen (tax excluded). Meanwhile, services like Rakuten Mobile's maximum monthly fee of 2,980 yen (tax excluded) are presented in this format.

Efforts towards smart consumption are also active. The donation app "Givers" is running a campaign offering 1,000 points for purchases of 2,000 yen (tax excluded) or more. Aeon is holding a promotion where customers who purchase Kirin Beer Hare Kaze and Torisotei yakitori skewers, each totaling 500 yen (tax excluded) or more, can win discount coupons.

Some posts also mention the necessity of differentiating "tax excluded" prices from "temporary payment consumption tax" in accounting, indicating that price display formats extend beyond mere sales presentation to influence various other aspects. The ongoing discussions about "tax excluded" on social media underscore how consumers are keenly aware of prices in their daily lives and are striving to make informed decisions.

The Context

Japan has a consumption tax, similar to VAT or sales tax in other countries, which is currently set at 10%. Businesses have two primary ways to display prices: "税込" (zeikomi), meaning "tax included," and "税抜" (zeinuki), meaning "tax excluded." While there have been past regulations encouraging "tax included" displays to prevent consumer confusion, businesses often opt for "tax excluded" displays, particularly for higher-priced items or to make prices appear lower at first glance. This practice can make it challenging for consumers to quickly determine the final price they will pay and compare products accurately. The trending discussions on social media reflect a growing consumer awareness and sometimes frustration with this pricing convention, as people meticulously calculate the actual cost and share their experiences with unexpected totals or perceived price increases.