politics

Abe to decide on sales tax hike on Oct 1: Amari

7 Comments

Economic and fiscal policy minister Akira Amari said Monday that Prime Minister Shinzo Abe will make a decision on whether to increase the sales tax on Oct 1.

Abe, who returned from the IOC meeting in Argentina on Monday, had previously said that he would base his decision on gross domestic product (GDP) data for the quarter. On Monday, data released by the Cabinet Office showed an annualized 3.8% expansion from a preliminary 2.6%, adding to growing signs a solid recovery is taking hold and heightening the case for Abe to proceed with a planned sales tax hike next year.

Unless there is a change in the plan, Japan's sales tax will be raised to 8% from 5% in April and to 10% in October 2015.

Amari told reporters that if the government decides to go ahead with the planned tax hike, it will also compile an extra budget for fiscal spending to cushion the damage to the economy and submit relevant bills to the Diet early next year.

Critics of the tax hike plan have called for delaying or watering down the tax hike, for fear of threatening Japan's budding economic recovery.

© Japan Today/Reuters

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7 Comments
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getting ready for bestest plum project awards

1 ( +1 / -0 )

it's decided 'firmly,' just keep reading media reports and start paying additional tax from April fools day 2014 :(

1 ( +1 / -0 )

Now wait a damn minute! Didn't Taro "Silver Spoon" Aso just say he was telling the G-20 that Japan is raising the consumption tax? (The story link is a 404 now, so maybe he didn't?)

2 ( +2 / -0 )

My bet is it's going up. Who else is going to pay for the Olympics, Fukushima... ? It just may be time to jump ship.

3 ( +3 / -0 )

fiscal spending to cushion the damage to the economy

The logic -- we have to raise taxes to pay for our spending, but we'll make sure to spend more to offset damage caused by higher taxes ? ? ?

3 ( +4 / -1 )

Pretty much a "done deal" now that they have to pay for the building projects related to the Olympics. Yeah the Olympics will only be in Tokyo, but the city isn't going to be able to foot the bill all by itself.

0 ( +0 / -0 )

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