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	Japan: Taxation
	Japan: Regulatory issues
	Japan: Infrastructure
	Japan: E-commerce
	Japan: Key issues

Watchlist The Japanese IT revolution is being propelled by a range of mobile devices, including car-navigation systems, palm-held devices and toys like Sony's PlayStation2. The country is a world leader in the application of wireless application protocol (WAP) devices. Convenience store chains are leveraging their nationwide networks to become leaders in Internet commerce. E-commerce is having a deep impact on Japan's financial industry, as banks, securities companies and insurers seek new ways of doing business in an increasingly deregulated and competitive environment. Infrastructure ISPs, 1999: 3,000 (approx.) Individuals online, 1999: 27m ISDN lines: 3.1m PCs: 9.4m Cellphone subscribers: 54m Source: Eurotechnology, 1999 figures. Regulatory environment Japanese consumers stand to benefit from a recent US-Japan accord, which calls on NTT to reduce local access charges by 20% over the next two years. Savings could amount to ¥25bn or more than $200m. At present NTT controls around 90% of the local phone market. Japan Telecom is expected to enter the market and compete head on with NTT, though not before spring 2001. Taxation The Ministry of Finance and Economy (MoFE), which oversees tax policy, states that e-commerce transactions should fall under the same tax code that is applied to physical goods and services. That interpretation covers income tax, consumption tax, tariffs and other national taxes relevant to commercial dealings. Popular sites aruweb.com Web hosting asahi.com Newspaper eloan.co.jp E-loans from Softbank hi-co.com/BridgeJapan Marketing site japaninc.net E-business magazine japantimes.co.jp Newspaper kakaku.com Price comparison site miti.go.jp/index-e.html Ministry of International Trade and Industry yahoo.co.jp Yahoo! Japan roadmap.gr.jp/index/ebj-feb2002.html Internet news

Business-to-consumer sales 1998: ¥64bn 1999: ¥248bn 2000: ¥1.0trn 2001: ¥1.9trn 2002: ¥2.7trn 2003: ¥3.6trn 2004: ¥5.4trn Source: Electronic Promotion Council of Japan. Japan is a world leader in wireless e-commerce: according to Eurotechnology, a consulting firm, the number of mobile Internet subscribers was 7m as of the end of May 2000. Economy 1999: Population: 126.7m GDP ($ bn): 4,352.5 GDP per head ($ at market exchange rate): 34,356 Inflation (av): -0.3% Forecast GDP growth, 2000: 0.9% Origin of GDP 1999: Agriculture: 1.8% Services: 64.2% Industry: 34% Culture: Tertiary education: 45% Language: Japanese Credit-card penetration: high Source: EIU Country Forecast, Country Profile.