Japan proceeds with twice-delayed sales tax hike as growth sputters

Record ID: 1434597

  • Title: Japan proceeds with twice-delayed sales tax hike as growth sputters
  • Date: 1st October 2019
  • Summary: TOKYO, JAPAN (OCTOBER 1, 2019) (REUTERS) PEOPLE AT STATION (SOUNDBITE) (Japanese) RESIDENT OF TOKYO, ETSUKO KOYAMA, SAYING: "I hope the government will use money from tax hike for clear purposes, such as to support the elderly for retirement and care giving as well as children. I don't want it if they throw money away, but if not, I agree with the tax hike." (SOUNDBITE) (English) GERMAN TOURIST, JUERGEN DIEBOLD, SAYING: "Increase for me does not look as a severe impact, but nevertheless, as a tourist with foreign passport, you can anyway have the tax free, so it's not really impacting me." VARIOUS OF PEOPLE SHOPPING
  • Embargoed: 15th October 2019 06:41
  • Keywords: Japan tax hike finance economy Shinzo Abe
  • Location: TOKYO, JAPAN
  • City: TOKYO, JAPAN
  • Country: Japan
  • Topics: Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA002AZ9KH1J
  • Aspect Ratio: 16:9
  • Story Text: Japan rolled out a twice-delayed increase in the sales tax to 10% from 8% on Tuesday (October 1), a move that is seen as critical for fixing the country's tattered finances but that could also tip the economy into recession by dampening consumer sentiment.
    The government has already applied measures to mitigate the pain on consumption, mindful of avoiding the effects of the last increase, in 2014, which led to a severe economic downturn.
    Japanese Prime Minister Shinzo Abe said the tax hike would help pay for social security services in an ageing society, such as making pre-school education free, lowering nursing care, insurance premiums, and providing payouts to the elderly with low pension benefits.
    To ease the pain on low-income households, some food and non-alcoholic beverages will be exempted from the higher tax rate.
    (Production: Kohei Miyazaki, Kwiyeon Ha)
  • Copyright Holder: REUTERS
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