Economy | ANALYSIS
Households to take hit from tax hike
by Tomoko Otake
The consumption tax increase will hit every household in Japan hard, with many people’s financial future hanging on whether their wages rise enough to offset the hike's impact.
National Sep 8, 2013
Government considers lowering bar for corporate tax break to spur pay raises
The government will consider lowering the bar for a tax cut for companies giving wage hikes to minimize any slowdown in consumption after the planned sales tax increase in April, sources close to the matter said Sunday. Changes would be made to the corporate ...
Economy Sep 4, 2013
Hike levy or lose credibility, SMBC analyst says
An analyst at a major brokerage wants the government to follow through on its plan and raise the consumption tax rate to 8 percent in April, warning that otherwise Japan could incur large costs as a result of a loss of confidence. “Raising the ...
Economy Sep 4, 2013
Japan can handle levy hike: 'Mr. Yen'
The nascent economic recovery is strong enough to weather an increase in the consumption tax to repair the government’s finances, according to former senior Finance Ministry official Eisuke Sakakibara. Prime Minister Shinzo Abe’s “Abenomics” prescription of fiscal and monetary stimulus has given the government ...
Economy Sep 4, 2013
Deflation urged to be vanquished before tax is raised
Fighting deflation is more important than raising the sales tax, according to Waseda University professor Masazumi Wakatabe. “Japan has not fully come out of the protracted deflation yet,” Wakatabe said. “The economy is only beginning to recover, driven by personal consumption,” he said, and ...
Business Sep 3, 2013
Diet may discuss stimulus budget in early '14
The administration may submit an extra budget to the Diet early next year to stimulate the economy amid fears over the negative impact of the planned consumption tax hike in April, Finance Minister Taro Aso said Tuesday. Aso, also deputy prime minister, again indicated ...
Politics & Diplomacy Sep 1, 2013
Abe to go ahead with sales tax hike, says Machimura
Prime Minister Shinzo Abe will go ahead with a consumption tax hike in April next year as planned, a Liberal Democratic Party heavyweight claimed Sunday. Abe is supposed to announce his decision on the tax hike before Oct. 7, when he leaves to attend ...
Economy Aug 31, 2013
Most on Abe's expert panel approve plan to hike sales tax
by Ayako Mie
The government’s expert panel on the planned consumption tax hike wrapped up discussions Saturday with more than 70 percent of its members supporting the plan as it now stands, saying Japan will suffer a much bigger economic blow if the tax isn’t raised. Prime ...
Economy Aug 30, 2013
July consumer prices rose at fastest pace since late '08
Consumer prices rose in July at their fastest pace in almost five years, government data show, giving cheer to the administration's easy-money policy but putting a strain on workers owing to slow wage growth.
Business Aug 30, 2013
Gov't to introduce tax breaks to realize growth strategy
As part of its growth strategy, the administration plans to introduce a set of tax breaks to encourage companies to purchase new equipment and help hospitals and inns make their buildings more resilient to earthquakes. By also taking measures to bolster Japan’s industrial competitiveness, ...
National Aug 28, 2013
Opinions of experts in panel divided on planned sales tax hike
Opinion is divided over whether Prime Minister Shinzo Abe should proceed with a sales tax hike next year as planned, a Kyodo News poll of a government panel of experts showed Wednesday. Among 33 of the panel’s 60 members who responded, 19 support the ...
Business Aug 28, 2013
Toyoda qualifies endorsement of consumption levy hike
Toyota Motor Corp. President Akio Toyoda on Wednesday threw his support behind the planned consumption tax increase but asked the government to adopt measures ensuring sustainable economic growth if Prime Minister Shinzo Abe goes ahead with the hike. “I favor a consumption tax hike ...
National Aug 27, 2013
Abe adviser says sales tax hike should be delayed for a year
The government should postpone the planned sales tax hike next April by a year to ensure Japan’s exit from deflation, a special adviser to Prime Minister Shinzo Abe said Tuesday. Koichi Hamada, a professor emeritus of economics at Yale University and the mastermind of ...