Japan braces for gold smuggling rush in shadows of tax hike

Another potential bonanza for organized crime unless loopholes closed

20180901N gold bar

Gold bars at a branch of Mitsubishi Materials in Tokyo. Japan is a go-to place for smugglers of the metal.

AIKO MUNAKATA, Nikkei staff writer

TOKYO -- As Japan prepares to raise the consumption tax for the first time in half a decade next year, the Ministry of Finance worries that gold smuggling will also get a boost.

When the tax was last increased in 2014, to 8% from 5%, smuggling of the precious metal jumped as criminal organizations quickly realized how to game the system for their own enrichment.

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