Japan consumption tax rise in doubt |
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26 August 2011 Click to learn about December 2011 announced rise in Japan's consumption tax The on going political uncertainty means the consensus around a rise in Japanese consumption tax - similar to VAT - is now breaking down. Click here to read about Japanese Consumption Tax compliance 5% Consumption Tax DUE A RAISEJapan's sales tax, at 5%, is one of the lowest in the economically developed countries. Europe's VAT rate is around 20%. There had been speculation throughout the start of 2011 that there would be a rise to fund spiralling social costs of an ageing population. Following the March 2011 earthquake, this seem to elevate the need for a tax rise to underwrite the massive rebuilding campaign. However, the resignation of the Prime Minister, Naoto Kan, who backed a consumption tax rise in 2010, looks certain to delay the rise. The difficulties facing Japan's economy was underscored by the credit agency, Moody's, cutting Japan's credit rating this month. Click here to receive our free VAT news updates TMF Group - Globalizing Business |
