Japan raises consumption tax to 8 percent to address the nation’s economic problems but British exporters need not worry say financial experts.
Japan raised its consumption tax – the equivalent of VAT – on April 1, the first day of the fiscal year, as part of Prime Minister Shinzo Abe’s broader plan to fix the nation’s economic problems.
The sales tax climbed from 5 percent to 8 percent and was the first such increase in 17 years. A further increase, to 10 percent, is scheduled to be introduced in October 2015.
And while any increase is inevitably unpopular with the public, there is a sense that it was necessary to help to deal with Japan’s massive national debt and financial concerns linked to the nation’s rapidly ageing population and climbing social welfare expenditures.
Article by Julian Ryall, April 2014