In Germany, the structure of their political system and the structure of their society is very centralized. Because of this centralization, most of the policies that Germany churns out are also centralized. For example, their tax policy and budget formulation process are centralized because the government that creates these policies is also centralized. This structural structure differs from that of Japan, where the country has a more pluralistic system, therefore their fiscal policies tend to contain a more diversified structure. As stated earlier, Japan has a low VAT. Unlike Germany, Japan has a low VAT due to public opposition. When Japan introduced VAT, it was welcomed by businesses but not by citizens; this reflects Japan's pluralism