The Ministry of Strategy and Finance decided to maintain the existing policy of not allowing convenience stores to sell draft beer. As a result, this year, instant draft beer sold in cups can only be found in restaurants.
According to the Ministry of Strategy and Finance on the 26th, the government recently replied ‘cannot sell’ to a tax law inquiry asking whether convenience stores and other liquor retailers can subdivide and sell beer produced in beer making kits. This reaffirmed the existing position that the sale of subdivisions of alcoholic beverages is limited to restaurants, etc.
The current Liquor Tax Law strictly prohibits the processing and manipulation of alcoholic beverages. Licenses will be revoked if it is discovered that alcohol has been arbitrarily processed and sold, such as repackaging.
However, when a consumer orders at a general restaurant or pub, it is exceptionally permitted to put draft beer in a separate container and sell it in small portions. This is the result of the Ministry of Strategy and Finance and the National Tax Service amending the Basic Rules of the Liquor Tax Act in July 2019 to ease draft beer sales regulations.
At the time, the government paid attention to the fact that alcoholic beverages shipped in large beer kegs (casks) had no choice but to be subdivided into other containers and sold. As a result, consumers can have draft beer delivered with food or drink draft beer as they like at restaurants.
However, it is still prohibited to subdivide draft beer in advance before ordering it, store and sell it, or attach a separate label to alcoholic beverages and repackage them. In addition, it is also impossible for non-restaurants, such as convenience stores and supermarkets, to sell subdivisions.
The distribution industry has consistently filed civil complaints to allow convenience stores to subdivide and sell alcoholic beverages, but the government is maintaining the existing judgment (ban) because hygiene and tax management are not easy.
Another factor to consider is that restaurants may object due to reasons such as fairness in management and supervision. As regulations prohibiting the sale of draft beer at convenience stores remain intact, small businesses trying to find sales channels through large-scale retail sales networks such as convenience stores are finding it difficult to secure sales channels.
However, the government decided to review within this year whether to extend the 20% reduction in draft beer tax, which is scheduled to end at the end of this year.
To alleviate the burden on the self-employed, the draft beer tax was temporarily lowered until the end of this year, but it was judged that if the liquor tax rate normalized from next year, it could act as a factor in raising draft beer prices.
