My Number system to be used for sales tax refunds when levy hiked to 10%

The Finance Ministry is planning to tap into the new My Number ID system as a way to provide consumers with refunds on certain goods when the consumption tax is hiked from 8 percent to 10 percent in 2017, sources said.
Under the ministry’s plan, consumers would be required to pay the 10 percent tax rate on all goods, but would be eligible for refunds on the 2 percentage point tax hike portion for some products.
The reduced tax rate of 8 percent would be applied to all food and beverage items, except alcoholic drinks, when the tax rate is increased to 10 percent in April 2017.

To facilitate the refund, people would present their 12-digit My Number card, which will be distributed to all residents in Japan from next January, to make purchases.
The government would then use My Number to collect and store purchase data, while taking strict information protection measures to prevent personal data leaks, the sources said.

Names, addresses and birthdate information on the cards, which have been created as part of a centralized system for tax and social security purposes, would not be read, the sources added.

Purchase data would be converted into points, with consumers required to go online to determine how much they will receive in refunds from their points. They would then need to apply for a refund, which would then be deposited into a pre-registered bank accounts.

The ministry will present the scheme to the ruling bloc of the Liberal Democratic Party and Komeito as early as Tuesday, the sources said.

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