Fukuda hints at early sales tax hike

Wednesday 18th June, 07:21 AM JST

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Youdontknow at 06:32 PM JST - 18th June

As if Japanese consumption prices aren't already ripping us off already!
Youdontknow at 06:32 PM JST - 18th June

I like how he compares it to Europe, but doesn't put his police force or legal systems on the same level.
capone at 06:54 PM JST - 18th June

5%...that's about what his approval rating will be by next week
sharky1 at 09:55 PM JST - 18th June

This ought to be good. Kill the economy to save social services. How many businesses will go under because of the increased tax rate. How much more will fuel cost? Will the increase put more people on social programs because they won't be able to survive? Submarine economic...dive, dive, dive...
Patrick Smash at 10:44 PM JST - 18th June

It'll go up to 7% initially, and will get hiked a further 2% every couple of years. Japan has no answer to the cost of the elderly, and no leadership or proactive policies. We're doomed, doomed...
Maruku at 11:44 PM JST - 18th June

I'm with Pat. Up smokes to 4 Euro, petrol by 10 yen/litre, up the retirement age, and tax small dogs ... see how it goes.
Maruku at 11:47 PM JST - 18th June

... or raise consumption by 15% but then open the markets to foreign companies to create some competition and ease the burden on consumers.
thepro at 12:21 AM JST - 19th June

And this on top of the doubling of residence tax. Thanks, you money wasting government schysters.
realist at 01:32 AM JST - 19th June

Fukuda will be signing his own politcal demise, and hopefully that of the horrible LDP/Soka Gakkai evil alliance, if they raise Consumption Tax. For a start, it is already unacceptable to tax food, as this evil government does at the minute.
Shumatsu_Samurai at 04:51 AM JST - 19th June

realist (and that's an ironic name) even the Economist has said this is an inevitable and maybe necessary tax increase. I don't think it's especially unfair to raise it a few percentage points.

As for a recession, again I don't think raising it by 3-5% points will cause that. Equally I think that Fukuda may be the person to put the road tax to use for the general budget - we shall see.
umbrella at 06:35 AM JST - 19th June

They can't do it. Prices are already rising rapidly. Wages are not increasing to match. If they do increase the sales tax, expect an even deeper recession/depression and social unrest. Yes riots, even in "gaman, gambarimasu, sho ga nai" japan.
fireant at 08:56 AM JST - 19th June

I like how Japanese politicians are like 5-year-olds when it comes to getting something they want. In this case "Sammy has 8% sales tax! Why can't IIIIIIIIIIIIIIIIIIIIII?!!"

How about this, Fukuda, NOT all states or cities in the US have an 8% sales tax. Some are higher. Some are 0%. Hmm? How about this, Fukuda, other countries don't have the death penalty. Hmm? How about this, Fukuda, Think For Yourself!

Then, when politicians in other countries say something bad about Japan, Japanese politicians scream "This is our country! You have no right! We Japanese want (fill in blank)!"
Altria at 09:21 AM JST - 19th June

They'd be completely mad to raise the sales tax now, political suicide aside.

You're going to end up boosting an already dangerous inflation situation, and strangling the economy at the same time.
Jandals at 04:33 PM JST - 19th June

...or maybe he reduce the ministry of works budget and increase health and educations...
presto345 at 04:50 PM JST - 19th June

even the Economist has said this is an inevitable and maybe necessary tax increase

Notice the maybe in this statement. I have said it for years, I'm all for a modest increase as soon as the distribution of goods and services and their prices fall in line with those in the EU. And only then can you make a comparison with taxation in the EU. For years we have been hearing voices about streamlining government and stop wasting tax money. What has come of it? The answer is obvious? Zilch. Raising the tax rate, squeezing out the consumer is a much easier short time solution. That this so-called solution is going to cause a major recession and create more issues than it is to solve is just ignored. A next cabinet can deal with that little problem. BTW, it looks like most posters here agree on the insanity of increasing the consumption/sales tax.