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Japan recession threatens Consumption Tax rise


Japan recession threatens Consumption Tax rise

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.


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.