Japan's Word of the Year Reflects Concerns over Soaring Living Expenses

"Tax" has been selected as the word of the year by the Japanese public, reflecting increasing living costs and ongoing tax reforms in the world's third-largest economy. The kanji for tax came out on top in an annual poll of over 147,000 respondents conducted by the Japan Kanji Aptitude Testing Foundation. The head priest of a Kyoto temple painted a giant calligraphy of the character at an unveiling ceremony on Tuesday.

According to public broadcaster NHK, the character was selected due to ongoing discussions about tax increases throughout the year, association officials reported. They also noted that there has been extensive debate in the country regarding income tax reductions, the implementation of a new invoicing system, and the introduction of stricter regulations for a tax donation program.

"In the coming year, there are also discussions about raising consumption tax, tobacco tax, and corporate tax, among other topics related to taxation," one survey respondent from Osaka mentioned. This comes as Japan's inflation has spiked to 4.3% over the past year, exacerbated by stagnant wages that have long been an issue in the country. While these inflation figures may seem moderate to some nations, they are considered unusually high in Japan.

The Bank of Japan's choice to maintain low interest rates, leading to a decline in the value of the Japanese yen, has resulted in a spike in import costs. This decision, meant to attract tourists amidst the Covid-19 pandemic, is also causing inflation without a corresponding increase in wages, as noted by a Tokyo resident in a recent survey.

In 2014, tax was also the top choice when Japan increased consumption taxes. This year, the second-place winner was the kanji for "heat," reflecting Japan's unprecedented summer heat wave, while "war" took the third spot, a continuing global news headline.