Wednesday, June 27, 2012

Increase of Consumption Tax

Japan parliament passes sales tax rise; ruling party splits (Reuters)

A historic bill to raise the consumption tax passed the Diet. Currently, the Japanese consumption tax (sales tax) rate is 5%. The rate will be increased to 8% in April of 2014, and reach 10% in October of 2015.

I agree to the idea that the direct-indirect tax ratio should be rectified in the long run, but increasing the rate at this economically tough time will undermine the unstable Japanese economy.

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