Japan adjusts to higher sales tax


Businesses in Japan are working hard changing price tags and displays to reflect Monday’s sales tax increase from 5 to 8 percent.

It’s Japan's first sales tax hike in 17 years.

Japan Railway upped train fares across the country.

Taxis reflected a base fare increase of 30 yen as of midnight.

Department store giants Sogo and Seibu will sell special "lucky bags" to keep customers coming.

Buying a drink from a vending machine now costs 10 yen more, or the equivalent of 10 cents of a dollar.

Some fast food chains selling donburi, a popular meat and rice dish, are lowering prices to attract customers.

Others are using higher prices as a chance to improve product quality.

Prime minister Shinzo Abe is asking people for their understanding.

He explains that revenues will be used to fund social security, health insurance, nursing care and welfare.

Shoppers rushed to take advantage of pre-increase prices in March.

Retailers fear a drop in sales in the months ahead.