Jul 22, 2014

Fiscal '14 growth forecast cut to 1.2%

The government on Tuesday cut its forecast for economic growth in fiscal 2014 to 1.2 percent from 1.4 percent in real terms amid lingering fears that the April 1 consumption tax hike — the first in 17 years — may continue to weigh on ...

Apr 16, 2014

Big biz keen to skirt tax hike

The government has hired around 600 special investigators to prevent big businesses from passing the latest consumption tax increase on to their suppliers and contractors, but many small businesses are facing increasingly subtle billing and payment schemes from clients. In Tokyo’s Ota Ward, home ...

Apr 11, 2014

Sales plunge as consumers shun luxury goods after tax increase

Japanese consumers are keeping their wallets firmly closed after the first sales tax hike in 17 years, with luxury items and appliances suffering and one major department store reporting a 25 percent drop in sales. The precipitous plunge comes after millions of shoppers made ...

Stores looking to tourists for big sales

Mar 25, 2014

Stores looking to tourists for big sales

Many major department stores are zeroing in on foreign tourists and other visitors exempt from paying the consumption tax if they spend over a certain amount, anticipating that sales of luxury items will plunge following the sales tax hike next Tuesday. Department stores have ...

Mar 18, 2014

Analysts split on fiscal crisis timeline

by Masaaki Iwamoto

Economists are split over how long the government has to rein in the world’s biggest debt burden, a Bloomberg News survey shows, adding to a debate on whether the government should keep ratcheting up the sales tax. Eleven of 34 analysts said the government ...

Isetan Mitsukoshi expects sales drop

Mar 18, 2014

Isetan Mitsukoshi expects sales drop

Isetan Mitsukoshi Holdings Ltd. expects its sales outside the Tokyo metropolitan area and other urban areas to decline for a prolonged period after the consumption tax is hiked on April 1, its president said. “The prospects for sales in provincial areas are harsh,” Hiroshi ...

With 8% hurdle cleared, Aso eyes 10% sales tax

Oct 8, 2013

With 8% hurdle cleared, Aso eyes 10% sales tax

by Reiji Yoshida

Just a week after Prime Minister Shinzo Abe announced his intention to raise the 5 percent consumption tax to 8 percent next April, Finance Minister Taro Aso said he was upbeat about raising the levy further to 10 percent. Aso told reporters Tuesday the ...

Sep 21, 2013

Corporate tax cut agreement eludes

Prime Minister Shinzo Abe’s top economic chiefs have failed to agree on a contentious corporate tax cut amid lingering skepticism that the move will bolster the deflation-mired economy and amid pressure on business leaders to raise wages. Abe, Finance Minister Taro Aso and economic ...

Sep 13, 2013

Toshiba chief urges Eco-point relaunch

The government should start another Eco-point subsidy program for energy-efficient products to help prevent any consumption tax hike from triggering an economic slowdown, Toshiba Corp. Vice Chairman Norio Sasaki said. Considering the anticipated surge in social security costs and the Japan’s steadily worsening fiscal ...