ABSTRACT
Japan’s tax system resembles that of the United States more than those of the Western European countries. There is no general sales or value-added tax in Japan, but substantial revenues are raised from selected excise and sumptuary taxes at all levels of government. Death and gift taxes are minor sources of revenue. There is no general consumption, or sales, tax in Japan, but selective excise taxes are levied on liquor, tobacco, petrol, consumer durable goods, energy and admissions. On the whole, the tax rates are moderate. Japan’s high rate of growth and moderate government expenditures permit the Japanese to adopt tax policies that can well be envied elsewhere. To assist in the formulation of tax policy, the Japanese developed an institution that illustrates their penchant for consensus in government policy. The role of the Tax Bureau in tax policy is typical of the role of the bureaucracy in decision-making within the Japanese government.
