25.7% in Japan to use food tax cut benefits for savings, survey finds

More than a quarter of people in Japan said they planned to put the money saved from a proposed cut in the consumption tax on food into savings, the most popular choice among respondents, an online survey showed Wednesday.

Research company Intage conducted the survey from Aug. 28 to Sept. 1, covering people aged 15 to 79. A total of 3,052 valid responses were received.

When asked how they would use the money saved, with multiple answers allowed, savings topped the list at 25.7%, followed by spending on travel and other leisure activities at 15.1%, investment at 10.4% and health-related expenses at 9.3%. Spending on hobbies was cited by 8.4% and spending on daily necessities by 7.6%.

Regarding how the tax cut might affect their consumer behavior, 49.7% said they would not change their spending plans, suggesting that they would remain cautious about spending even after the tax cut.

Meanwhile, 32.6% said they would put off purchases until after the tax cut, while 25.8% said they would make bulk purchases after the tax was lowered.

“Consumers appear to remain conscious of saving money and are concerned about the future, so they seem inclined to put aside the money saved through the tax cut for the time being,” an Intage official said.

“At the same time, some people want to spend the money saved on travel and hobbies to enrich their lives or treat themselves,” the official said.