
Japan’s tax system, which heavily relies on wage taxes centered on social insurance contributions, concentrates the tax burden on the working generation and reduces their disposable income. Eastern Europe, in contrast, has a high value-added tax (VAT) system designed to distribute the tax burden across society as a whole, including tourists. Raising the consumption tax is urgent, but the bill currently under review in this session of parliament targets the working generation. VAT Rates: Czech Republic: 21% Poland: 23%
