Kyubetsu Seido (sake grading system)

The kyubetsu seido (sake grading system) was a taxation system for sake that existed from 1943 to 1994, a classification method based on the tax levied when sake left the brewery. Under this system, sake was divided into four categories, 1st, 2nd, 3rd and 4th grade, each subject to a different tax rate. Grades were assigned according to the quality of the sake, and the tax burden differed by grade. The system was intended to encourage the healthy development of the sake industry and improvements in quality. It was abolished in 1994, and a new system was introduced through later tax reforms.