Japan is dealing with an unusual problem – its people do not consume enough alcohol, a trend  that has hit the country’s tax coffers. Alcohol consumption in Japan has fallen significantly from an average of 100 litres per person in 1995 to 75 litres in 2020 (average per adult annual intake of booze), according to figures from the National Tax Agency (NTA) quoted by The Guardian.

That's hurting Japan's budget, which is already running a deficit of more than Y48 trillion/$354 billion. So the government has initiated a countrywide competition seeking suggestions on ways to increase alcohol consumption. Dubbed ‘Sake Viva!’, the contest run by the NTA calls on people aged between 20 and 39 to submit creative ideas to boost the consumption of alcoholic beverages.

A range of factors are seen as being responsible for the decline, including Japan’s aging population, the Covid-19 pandemic and diminishing interest. According to the tax agency, the proportion of tax garnered from alcohol products has shrunk from 5% of total tax revenue in 1980 to 1.7% in 2020. 

The contest closes on September 9 and the winner is expected to be announced on November 10 in Tokyo. However, the initiative has received a mixed response as there are fears that the government is encouraging an unhealthy habit.

2018 figures from World Health Organization show that Japan’s consumption of pure alcohol per head (8 litres) was significantly less than in the UK (11.4 litres), although still more than in China (7 litres).