Welcome to Issue #97 of SIN and Happy World Sake Day!
We've had the date circled on our calendar all year and now here it is - Christmas for sake lovers everywhere!
Last year's festivities were a sharp improvement over the COVID years, and now this year is looking to be even better with all events in Japan going full steam ahead.
Of course, it's not just Japan. There's celebrations happening all over the world in the USA, UK, Australia, Singapore, Hong Kong, China and just about anywhere sake can be found, so get out and join the sake festivities.
Of course World Sake Day (or Nihonshu no Hi for the locals) is the day that, for some, marks the beginning of the new brewing season. Many breweries have actually already begun brewing or at least started preparation, some never stopped brewing, and others will wait a little longer before jumping back into action.
For the rest of us, it's a day to raise a glass, o-choko, guinomi - or whatever you have, to the fine folks that help to bring this wonderful beverage to all of us around the world.
Kampai!
Tax Changes For The Little Guys
Japan- From April 2024, a new special tax measures act will come into effect, which will replace the existing special tax measures that allow tax breaks for small-to-mid sized breweries. The existing tax was also applicable to local area revitalization projects and the local craft beer industry. Once the new measures come in, they will be in effect until March 2029.
In fact, the new measures have actually already been introduced, however a moratorium period from April 2023 to March 2024 is in place, allowing breweries who are benefitting from the lower tax rate the time needed to prepare for the new tax measures.
The new measurement is for small-to-mid sized sake breweries with an annual production level equal to or less than 3000 kiloliters. Small-to-mid size is also defined as a company with less than JPY300mil capital (USD2mil), less than 300 employees or an individual owner with less than 300 employees. However, to continue to take advantage of the lower tax rate under the new measurement, breweries need to apply for and receive approval as Approved Sake Manufacturers by December 2023.
Breweries that are currently operating under existing special tax measures that do not apply for the revised benefits, will no longer receive the tax benefits.
Among the documentation breweries are required to submit is a five-year business plan, which must detail measurable goals to strengthen the brewery’s economic standing. Once this business plan is approved, breweries will need to submit progress reports annually.
The National Tax Authority is offering assistance to help breweries upon request - a kind gesture considering most breweries are about to dive into a new brewing season with a myriad of other issues to contend with.
Source - NTA
JG: This is big news, actually. Clause 87 was always intended to be temporary, and gave a big break to the little guys, so was not really fair. This one seems to be a bit more fair, and while only set to last until 2029, it could be extended if it seems to be working. And it also calls for a bit more paperwork and other details to keep them honest. I have heard rumors that if Clause 87 were to be abolished we would lose several hundred small kura overnight. But it looks like the NTA found a happy medium. It looks potentially good for the industry. Let us see what the word on the street will be.
Dassai Blue Makes Its Debut
New York- Unless you've been living under a social media rock for the past couple of weeks, most will have heard that Asahi Shuzō finally launched Dassai BLUE, its US-brewed sake. An opening ceremony was held on September 23 and shipping has begun.
The brewery was finally completed in March following several obstacles - many COVID related - with the end result blowing out to a budget of JPY 8 billion (USD53mil) - way over the original one billion yen budget forecast. Following a trial period, full-scale brewing began in July.
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