Japan is increasing the tax rate and Japanese consumers are trying to save, where they can, on long term purchases including death care packages for themselves and their families.
Japan´s massive debt
To pay down the country’s massive debt and to help support an aging population and young families, who the government needs to help balance the decreasing population problem, Japan will be increasing tax rates from 8% to 10%. When they did this 5 years ago (from 5% to 8%) Japan fell into recession, and while the current increase is slightly less it does not guarantee what will happen to the economy.
Japanses look to save on funeral expenses
Consumers aren’t taking any chances and as such are investing in items they know they will need and want to save on while they still can. One purchase Japanese can guarantee needing at some point is funeral services. According to the Times, many consumers may have already made their essential purchases, according to what the Japanese funeral industry shows. Mikage, a Japanese company that helps people make their last arrangements, had been advertising savings of as much as 20% for those who made their purchases before the increase happens.
