Japan warns on Consumption Tax rise
- 13 June 2013 | Richard Asquith
The proposed doubling of Japanese Consumption Tax to 10% by 2015 was put into doubt by the Prime Minister, Shinzo Abe.
Speaking on Japanese television, he said that if the economy is not sufficiently recovered, then he will delay the first increase, from the current 5% to 8%, due in April 2014. He made clear that the rise in Japanese Consumption Tax was always predicated on the recovery of the general economy.
The doubling of Consumption Tax to 10% by October 2015 was announced in December 2011, and was proposed to help meet the spiraling costs of the aging population.
It is likely that a final decision on the Japanese VAT rise will take place in the autumn of 2013.