Japan recession threatens Consumption Tax rise
- Consumption Tax
- 27 March 2016 | Richard Asquith
Japan’s lacklustre economy, currently at negative growth rate of 0.3%, means that the long-planned Consumption Tax rise to 10% may be postponed again.
Whilst Japan has been obliged to schedule the rise from 8% since 2012 to help fund rising debt with an aging population, the flat economy may not stand a further dampening on consumer spend that an indirect tax rise would bring. The rise had already been delayed once in 2015.
The primary reason for the slowdown is the fall in Chinese growth.