Japan ¥2 trillion stimulus for Oct 2019 Consumption Tax rise to 10%
- Consumption Tax
- Mar 28, 2019 | Richard Asquith
Japan is set to raise its Consumption Tax rate from 8% to 10% on 1 October 2019. To prevent a repeat of the last increase’s collapse in consumer spending, Parliament has this week approved a ¥2 trillion range of consumer and retail stimulus. This includes retail vouchers for low-income shoppers and families.
A new, reduced Consumption Tax rate of 8% is being introduced for basic foodstuffs.
The rise is part of two-stage increase; the first, from 5% to 8% in 2014. This tipped the country into recession. As a result, the second second rise has already been postponed twice. However, this approved stimulus will seek to lock-in the rise for October.
Japan has the largest public debt of the developed world at 223% of GDP, and a fast ageing population forcing the rise in indirect tax.
Latest Japanese news
January 23, 2019
Japan is scheduled to complete a two-stage doubling of its Consumption Tax rate to 10% on 1 October 2019. The first part of the rise, from 5% to today’s 8% was enacted on 1 April 2014.
October 14, 2018
Japan is to confirm this week its plan to complete the second rise in its Consumption Tax, from 8% to 10% in October 2019. ...
August 13, 2018
Japan’s latest growth rates mean the planned rise in its Consumption Tax from 8% to 10% in October 2019 will still go ahead. The...