Govt launches competition to ‘encourage alcohol consumption’ as tax revenues decline

After a shift in attitudes among young adults resulted in a drop in tax revenues, the Japanese government has launched a nationwide competition to solicit ideas to encourage people to drink more alcohol. The National Tax Agency (NTA) is running the Sake Viva! campaign, which invites people aged 20 to 39 to submit ideas for reviving the appeal of alcoholic beverages, which has declined as a result of lifestyle changes during the coronavirus pandemic, particularly among young people.

According to the Guardian, the contest, which runs until September 9th, seeks ‘new items and designs’ as well as strategies to encourage at-home drinking. Competitors should look into metaverse-based sales strategies, according to the local website JiJi.com.

According to the NTA, annual alcohol consumption in Japan has decreased from 100 litres per person in 1995 to 75 litres in 2020. Japan’s finances, which are already in the red by more than 48 trillion yen (£290 billion), have been harmed by the decline in alcohol sales.

Alcohol-related taxes made up 1.7% of total tax revenue in Japan in 2020, down from 3% in 2011 and 5% in 1980. The National Taxpayers Alliance reported earlier this month that total revenue collected from alcohol taxes in the 2020 fiscal year decreased by more than 110 billion to 1.1 trillion compared to the previous year. According to the Japan Times, this is the largest drop in alcohol tax revenue in 31 years.

Beer consumption has decreased significantly, with sales volume dropping 20% to less than 1.8 billion litres. According to the Kirin brewery, which produces Ichiban Shibori and Kirin lager, the average Japanese person consumed approximately 55 bottles of beer in 2020, representing a 9.1% decrease from the previous year.

The Japanese health ministry expressed the hope that the campaign will also serve as a reminder for people to only consume the ‘appropriate amount of alcohol’. The finalists in the competition will be invited to a lavish awards ceremony in Tokyo on November 10; the tax office has stated that it will promote the commercialization of the winning ideas.