Tokyo-As October 1st marks the beginning of the second fiscal half, Japan is set to experience a wave of changes poised to impact everyday life, from household budgets to driving regulations. These adjustments, ranging from increased food costs to new requirements for companies supporting working parents, necessitate a careful look at how these shifts will affect residents and visitors alike.

Rising Costs of Living: A Closer Look

Japanese consumers are preparing for another month of increasing prices, particularly in the food sector. A recent survey conducted by Teikoku Databank, encompassing 195 major food corporations, reveals anticipated price hikes for over 3,024 items this October. Popular beverages like Coca-Cola are expected to exceed ¥200 for a 500-milliliter bottle, demonstrating a consistent upward trend. Moreover, the elevated cost of rice continues to cascade, driving up prices for numerous rice-based products.

Beyond groceries,transportation and utility costs are also on the rise. Yamato Transport, a leading parcel delivery service, is increasing prices for packages between 120 and 200 centimeters in size. Parcels smaller than 100 centimeters will maintain their current delivery rates. Simultaneously, the expiration of government subsidies for electricity and gas is projected to add approximately ¥500 monthly to electricity bills and ¥200 to city gas bills for average households.

Healthcare Costs and Tax Incentives Adjusted

Individuals aged 75 and above may experience increased healthcare expenses as temporary relief measures,initially implemented in October 2022 to offset a rise in healthcare copayments to 20%,are discontinued. Consequently,eligible individuals will now be responsible for the full 20% of their healthcare costs at the point of service.

The popular Furusato Nōzei (hometown tax) system is also undergoing changes. While municipalities will continue soliciting donations, the incentive of reward points might potentially be eliminated, responding to concerns about excessive competition and potential misuse of the program.

New Workplace Policies and Enhanced Services

Japanese companies are now mandated to implement more flexible work arrangements, including remote work options and reduced working hours, for employees with preschool-aged children ages three and older. This shift aims to better support working parents and promote a more balanced work-life dynamic.

In a move to modernize its broadcasting capabilities,NHK is launching ‘NHK One,’ a new online service. This platform, accessible through a dedicated app, will allow viewers with valid license fees to stream programs live or on demand, alongside access to news, weather updates, and critical disaster information. This represents a major shift for Japan’s public broadcaster, aligning with evolving media consumption habits. Japan boasts a remarkably high internet penetration rate, exceeding 94% as of 2024, making an online service a logical progression for NHK.

Stricter Regulations for Foreign Drivers

The rules governing foreign drivers obtaining Japanese licenses are being tightened considerably. the ability for tourists and short-term visitors to convert their foreign licenses will be revoked. Furthermore,the written exam required for obtaining a Japanese license will be more demanding,increasing from 10 to 50 questions. This decision aims to enhance road safety and ensure all drivers meet a standardized level of knowledge and competence.

Change Impact
Food Prices Increase for 3,024+ items
Delivery charges Higher prices for larger parcels
Utilities Increased monthly bills (electricity & gas)
Healthcare (75+) Return to 20% copayment
Furusato Nōzei Potential end of reward points
Driving Licenses Stricter rules for foreigners

Did You know? The Furusato Nōzei system, designed to revitalize local economies, allows residents to donate to their hometowns or other municipalities and receive tax deductions.

Pro Tip: Plan your larger parcel deliveries strategically to avoid the increased rates, and consider energy-saving measures to mitigate rising utility costs.