Ⅴ Liquor Administration～ Taking various measures for the development of liquor business ～Liquor products are important for fiscal management in that liquor tax is imposed on them. Since stable
tax revenues can be expected from liquor products, they play an important role in the fiscal policy of theJapanese government.
The NTA is making proactive efforts for the sound development of liquor business, not to mention forrealizing the proper and fair taxation of liquor tax.
In order to revitalize the liquor industry and promote the exports, the measures for the domestic
market and the measures for export promotion are used as the two pillars for the objectives. Morespecifically, we look to the improvement in domestic and overseas visibility as well as provide support for
cultivating overseas sales channels. (Please also reference the “Sake no Shiori(the bookmark of liquor)”
uploaded to the NTA website for the initiatives by the NTA.)“Sake no Shiori”

1

Situation of Liquor Industry⑴ Situation of domestic market
The taxable volume of liquor has declined since it peaked in FY1999, due to decreasing birthrate,
accelerated aging, and population decrease, etc. Beer, in particular, has declined considerably, becauseof the shift of consumption from beer to low-priced liquors such as sparkling liquor and chuhai.

■ Changes in taxable volume（ten thousand kl）
1,017
1,000

Changes in taxable volume
Volume peaked in FY1999 (10,170,000 kl)
Volume of FY2021 was below 80% of its peak.
Other799

Fruit wine andsweet fruit wine
Whiskey andbrandy

800
40
39600

100

Sake
Pot distillation
Japanese spirits(Shochu)

Continuous
distillation Japanesespirits (Shochu)

Spirits

4002000

1970 75 80 85 899398※ “Other” included “Spirits” in 1985 and before.
Source: National Tax Agency Annual Statistics Report

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NATIONAL TAX AGENCY REPORT 2023

2003

08

13244

Liqueurs

29

Other brewedliquors

60

Sparkling liquor

194

Beer

2021
（Fiscal year）

About the NTA⑵ Situation of the Japan-made liquor exports
In 2022, Japan-produced liquor exports amounted to about 139.2 billion yen (21.4% increase over prioryear), showing a continued high performance following 2021 when 100 billion yen line had been exceeded
for the first time in history.

139,203（million yen）140,000

Other

130,000Wine

120,000

Shochu114,658

Gin and Vodka

1,746

110,000

90,00080,0002,172

Beer
Liqueurs
Sake
Whiskey

70,00061,82754,50360,00039,02940,00025,09729,35142,996

1,571

10,0000

10,524

18,6792014

56,06022,232

14,011

15,581

10,378

10,844

13,63914,977

2015

2016

2017

2018

46,144
19,451

27,115

2019

2020

2021

2022

LiquorAdministration

5,850

40,17824,141

11,507

2013

1,201

1,537

1,466

1,601

3,980

1,560

47,48971,03023,412

1,707（出典：財務省貿易統計）

20,0001,530

66,083Remedy for
Taxpayer Rights

50,00030,000Proper and Fair
Taxation and Collection

100,000

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration■ Trend in the export amount of liquor which made in Japan

Source: “Foreign Trade Statistics” by the Ministry of Finance

2Efforts of the NTA

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs～ Promotion of liquor business ～Given the current status and challenges, the NTA is making efforts to help the domestic and overseas
liquor markets expand and help them further grow and develop in a sound manner (Sake Report 3).

⑴ Efforts for cultivating overseas markets (export promotion)
In the “Implementation strategy to expand exports for agricultural, forestry and fishery products and food”(https://www.nta.go.jp/taxes/sake/yushutsu/01.htm#a01 [in Japanese]) (decided by the Headquarters
for Revitalizing Agriculture, Forestry and Fisheries, and Regions in December 2020), sake, whisky, andauthentic shochu/awamori were positioned as the three priority export items in the liquor category,where the target countries, targeted export volume, etc. were set for each item. We help them raise thevisibility and expand the sales channels towards the achievement of the targets for such three priority
items.

Statistics

a. Support for cultivating sales channels
To further expand the exports of Japan-produced liquor products, we exhibited Japan-produced liquor
products at a Japan pavilion in large-scale overseas trade EXPOs. Also, we held trade fairs with certain
overseas buyers that had been cultivated through liquor export coordinators.
NATIONAL TAX AGENCY REPORT 2023

56

ⅤLiquor Administrationb. Enhancing visibility
We implemented promotion for Japan-produced liquor products at the Japan House and invited liquor
specialists, sake breweries, media, influencers, and consumers to experience the different types of sakeand deepen their understanding towards sake.
In addition, using the “Subsidies for the business budget supporting overseas deployment of Japanproduced liquor products (Subsidies for overseas deployment and sake brewery tourism),” we aresupporting the initiatives by sake business operators, in terms of making tourist spots based on sakebreweries and creating sake brewery tourism plans.

ｃ. Support for creating higher values for and differentiation of products using subsidies
Using the “Subsidies for the business budget supporting overseas deployment of Japan-produced liquor
products (Subsidies for overseas deployment and sake brewery tourism)” (reposted), we are supporting
the initiatives by liquor business operators, in terms of creating higher values for Japan-produced liquor
products.
In addition, using the “Subsidies for the business budget supporting new market cultivation (Frontiersubsidies),” we are supporting the aggressive initiatives by liquor business operators to cultivate newmarkets whether domestic or overseas, for helping resolve their structural challenges (decline in domestic
demand, etc.).

d. Expanding usage of Geographical Indications (GI)1 to enhance brand value
We are engaged in designating and expanding usage of GI for it, from the perspective of enhancing brandvalue of liquor products within and outside Japan (For the latest designation status, see the “List of GIs for
liquor products” on the NTA website). On that, we are producing pamphlets and coordinating for relevant
events such as seminars.

e. Authorization of liquor product associations based on the Export Promotion Act
Based on the Export Promotion Act, in December 2022, we authorized the Japan Sake & Shochu Makers
Association as a “liquor product association” for sake, authentic shochu and awamori.

f. International negotiations for abolishing tariffs and import restrictions
To further improve the export environment for Japanese liquor business operators, we are discussing thefollowing through international negotiation: abolishment of tariffs and import restrictions; protection ofGIs; and efforts toward the mutual equivalency recognition of organic alcohol beverages.
Also, regarding the import restrictions imposed by certain countries on Japan-produced goods
following the nuclear power plant accident at TEPCO Fukushima Dai-ichi due to the Tohoku Mega Quake,we will keep requesting the relevant governments to abolish those restrictions.

⑵ Efforts to inscription of Japanese sake, shochu, and awamori, etc. on
the Representative List of the Intangible Cultural Heritage of Humanityof UNESCO.
We are making efforts for protection and inheritance of the traditional sake-making tech concerning
Japanese sake, etc. as well as toward the inscription of the Representative List of the Intangible Cultural
Heritage of Humanity of UNESCO, through collaboration with the Agency for Cultural Affairs, the“Preservation Society of Japanese Koji-based Sake making Craftsmanship,” etc.
In December 2021, this was registered in the name of “Traditional knowledge and skills of sake-making
with koji mold in japan” with the Registered Intangible Cultural Property. After that, it was proposed toUNESCO in March 2022. (It was re-proposed in March 2023.)

1 Under the Geographical Indication (GI) system, in the case that the characters of a liquor product or agricultural product unique to a specificproduction area (quality, recognition in society, etc.) have been established, only the products that are produced within the production area andfulfills certain production standards can exclusively use the name of its production area (the name of region as a brand).

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About the NTA⑶ Technological assistancea. Promotion of the spread of brewing technology, etc.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

Each Regional Taxation Bureau has the Office of Analysis and Brewing Technology (including Chief
Technical Officer of the Okinawa Regional Taxation Office) as its technological function to promote thespread of advanced technologies, etc., including research results of the National Research Institute ofBrewing (NRIB)1, through activities such as giving advice and consultation to liquor manufacturers, holding
competitions, research workshops, etc. and dispatching officials to seminars, appraisals, etc., held bysake-making associations, etc.

b. Support in the quality and safety of liquor

Proper and Fair
Taxation and Collection

With the aim of ensuring the safety of liquor in all stages from liquor production to consumption andenhancing the level of quality, we give technological assistance concerning improvement, etc. in theproduction process of liquor and confirm safety through actions including research and provision ofinformation on the radioactive substances of liquor.

c. Efforts by the National Research Institute of Brewing (NRIB)

Remedy for
Taxpayer Rights

Serving as an entity to cover the technological base for the development of the liquor industry, theNRIB conducts studies for increasing the brand value of Japanese liquor products, strengthening thetechnological base of liquor production, etc. as well as actively pursues the measures to develop personnel
for the liquor industry (lectures on liquor brewing, etc.) and outreach activities.

⑷ Measures for small and medium enterprises (SMEs)

LiquorAdministration

In order for the liquor industry, of which SMEs account for the majority, to adjust to change in the socialand economic conditions properly, the NTA supports diverse efforts by the industrial associations, suchas the modernization project by the Japan Sake & Shochu Makers Association.
Moreover, in coordination with related government offices and organizations, local governments andothers, the NTA provides business operators and industrial associations with information on governmental
measures for SMEs (consultation desks, subsidies, the tax system, financing, etc.) to promote the use of
these measures.

Ensuring Proper
Results
Evaluation
Administration of Services（）
Evaluation of Policies
by CPTAs⑸ Establishment of a fair trading environment of liquor
The NTA is striving to ensure fair trading through using “The Standards for the Fair Trading of Liquor2”(https://www.nta.go.jp/taxes/sake/koseitorihiki/mokuji.htm [in Japanese]) for dissemination to andenlightenment for liquor companies as well as through conducting surveys on the actual situation of liquor
trading. The standards were revised in March 2022 (took effect in June 2022), referencing the results ofa survey conducted after the enforcement of the standards in June 2017.

⑹ Response to social demands
a. Promotion of resource recycling
The beer industry promotes the “Action Plan for Achieving a Low-carbon Society” which was formulated
based on the “Plan for Global Warming Countermeasures”(determined by the Cabinet in October 2021).
The Liquor Subcommittee under the National Tax Council conducts evaluation and verification of suchendeavors.

Statistics

1 The NRIB’s missions during the “the fifth term of the medium-term objective period” from FY2021 to FY2025 is (1) to strive to develop the liquor
industry, (2) to strive for the appropriate application of liquor tax laws, and (3) to make efforts as the national center for liquor, and they conductvarious duties based on these missions.
2 These standards need to be complied with by all liquor companies (production, wholesale, and retail) to ensure fair transactions for liquor
products. They require the following: ① it is not allowed to sell liquor products at a price lower than the total costs of sale on a continuous basis
without a justifiable reason; and ② it is not allowed to execute a deal that might be significantly detrimental to the own liquor business or to theliquor business of other liquor companies.

NATIONAL TAX AGENCY REPORT 202358

ⅤLiquor Administration

b. Measures to prevent those under the age of 20 from consuming alcoholWith the purpose to prevent consuming alcohol under the age of 20, in addition to preparation of
educational posters and pamphlets, the NTA designates April of each year as the “Month to emphasize
prevention from consuming alcohol under the age of 20,” and carries out enlightenment activities incoordination with relevant ministries and agencies, and industry associations.

c. Measures against Health Problems Caused by Alcohol
Considering “The Basic Act on Measures against Health Problems Caused by Alcohol”(the second plan,from April 2021 to March 2026) formulated based on “The Basic Law on Measures to Prevent Damage
to Health due to Alcohol” enforced in June 2014, etc., the NTA implements initiatives for preventing
from consuming alcohol under the age of 20 and health problems due to alcohol in cooperation andcoordination with relevant ministries and agencies as well as associations in the liquor industry.

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NATIONAL TAX AGENCY REPORT 2023