Japan 10% Consumption Tax Oct 2019
- Apr 14, 2018 | Richard Asquith
Japan is continuing to prepare for a rise in its Consumption Tax from 8% to 10% on 1 October 2019. The planned rise has already been delayed once, in 2016. It is the second in a long-planned doubling of the tax – the first from 5% to 8% coming in 2014. The OECD has warned this month that it should rise to 19%.
Japan is being forced to raise its main indirect tax to help meet rising social costs from an ageing population.
The OCED has proposed that Japan will need to eventually increase the Consumption Tax rate to its members’ national average of 19% to help manage down the very high national debt of over twice the size of the economy.