Two financial matters not yet hatched are in the news this week. The first was the announcement that we will see our sales tax double to 10% by fiscal 2015. Why? Apparently, it is to "finance Japan's swelling welfare costs at a time when the population is aging." OK, but I am skeptical that that is the whole story, keeping in mind the disaster which recently hit the country and its continuing aftermath, which has given the national purse a flogging. In any case, it will likely happen, especially since the current 5% has been in place since it was raised from 3% in 1997.
The second piece of news is no surprise - only a fraction of the buckets of money (to the tune of 169 billion yen) that have been donated post earthquake have actually been disbursed. The reasons? The official news is that the benchmarks for distribution that were established in early April need to be "recalculated" by the national GPS (I jest) due to mistakes in the way the original allotments were determined (whatever that means). Furthermore, delays in the issuing of disaster certificates and the confirmation of family registrations in understaffed local offices have been blamed for the delay. Red tape and more red tape.
Amidst all the heat amidst this money talk, this year's Cool Biz campaign is soaring to new heights with the new name "Super Cool Biz"! Yet again, another "recalculation" in the dress codes and policies for reducing electricity this summer. Under the latest revisions, ministry workers can downclass to polo shirts, T-shirts, jeans and sneakers in the workplace rather than the original no-tie, no-jacket plan. However, how rigorously the new plan will be followed by civil servants and the private sector is uncertain. Speaking to reliable sources in the banking and insurance sectors, I learned that people involved in sales will maintain the suit-code since they deal with customers. Also, for people who stay in the office, the higher the rank, the less dressy they will be.
At least one aspect of the summer plan is being adhered to in most places though - less or no airconditioning. No more freezing cold trains and stores - this is my summer!
