Japan may delay 2017 Consumption Tax hike
- 26 February 2016 | Richard Asquith
The Japanese government has said that it may delay the planned rise in Consumption Tax from 8% to 10%, scheduled for April 2017.
The rise has already been delayed once, in October 2015. This was due to a sharp downturn in consumption following an earlier rise from 5% to 8% in 2014. The planned two-step rise was announced in 2012 to help the country deal with the spiraling social costs of an ageing population.
Comments this week by the Chief Cabinet Secretary, Yoshihide Suga, appeared to lay the ground for a further delay to the second rise. Although the government is not expected to announce a snap-election to decide on the rise as it was forced to do in 2014.
Japan's Consumption Tax regime is similar to VAT.