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Japan may delay 2017 Consumption Tax hike

  • VAT
  • 26 February 2016 | Richard Asquith

Japan may delay 2017 Consumption Tax hike

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.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.