We do not add the consumption tax increase to the reward.
The Fair Trade Commission made a recommendation to rectify that the company that operates cultural classes throughout the country paid compensation to the instructor and that the consumption tax was not properly added. This is the first time the Fair Trade Commission has made recommendations since the consumption tax rate was raised in October.
The industry leader “Culture”, which operates culture classes such as languages, musical instruments, and paintings and has its headquarters in Kanagawa Prefecture, received the recommendation. According to the Fair Trade Commission, the company has not signed up to increase the tax due to a contract to lower the fees paid to the instructor before the consumption tax rate was raised in October.
The law prohibits the tax increase from being added to prices and rewards as the consumption tax rate is raised, and the Fair Trade Commission has recommended that the Culture be corrected. This is the first time the Fair Trade Commission has made recommendations since the consumption tax rate was raised to 10%.
In response to the indication, the company withdrew its remuneration, and there were no damages to about 8,000 instructors. Culture said, “The reduction in compensation was decided in advance for management reasons and was not related to the increase in the consumption tax rate, but we were not aware of the laws and regulations.