Japan raises consumption tax in two steps from 5% to 10%

The Japanese coalition government has put forward long awaited plans to raise Japanese consumption tax to 10% by April 2015.  There will be a first increase from the current 5% consumption tax rate to 8% in April 2014.  In October 2015, the rate will then rise to 10%.

Plans for a rise the consumption tax, similar to Europe's VAT, have been discussed for many years.  The hike is required to help fund the spiralling social security costs of an ageing population.

The government will face stern opposition in pushing this change through.

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