Sales tax UP! Happy New Year!

[Taro Toporific]

Japan May Increase Its 5 Percent National Sales Tax, Tokyo Shimbun Says
Dec. 3 (Bloomberg)
Japan's governing Liberal Democratic Party may propose an increase in the country's 5 percent sales tax beginning in April 2006, the Tokyo Shimbun newspaper said....

[Steve Bildermann]

Even at 7% (which is what I think is being proposed) they have a long way to go to match the UK's 17.5%

http://www.netaccountants.com/valadtax.html

VAT Explained



or in other words

[Gestalt]

How much might they raise it by? I've heard a few economists recently who are of the opinion that the government should raise the consumption tax to 20% or more to make up for revenue shortfalls ..

[Taro Toporific]

How much might they raise it by? I've heard a few economists recently who are of the opinion that the government should raise the consumption tax to 20% or more to make up for revenue shortfalls ..

Yes, I've heard the 20% sales tax figure many times also. If it's 20% INCLUDING housing and food plus income tax on top of it, I'll leave. On the other hand, if it's 20% sales tax EXCLUDING housing and food (or no income tax or massive income tax reform), I could justify staying.

[kamome]

How much might they raise it by? I've heard a few economists recently who are of the opinion that the government should raise the consumption tax to 20% or more to make up for revenue shortfalls ..

Yes, I've heard the 20% sales tax figure many times also. If it's 20% INCLUDING housing and food plus income tax on top of it, I'll leave. On the other hand, if it's 20% sales tax EXCLUDING housing and food (or no income tax or massive income tax reform), I could justify staying.

I've heard that it will go up to 10%. Since this is actually a consumption tax, it will apply to food. It doesn't apply to income.

[AssKissinger]

Taxing food is such bullshit! Totally sticks it to the poor. I want some food stamps. Did you know in America food stamps look like a credit card now? Was anyone here ever on food stamps? Down with consumption tax! Up with taxing the incomes of rich assholes! Down with Japan pretending to be broke and poor while it funnels all its money into bullshit road construction! Big time thumbs way down on taxing food and rent 20%! I like steak.

[Captain Japan]

How much might they raise it by? I've heard a few economists recently who are of the opinion that the government should raise the consumption tax to 20% or more to make up for revenue shortfalls ..

Yes, I've heard the 20% sales tax figure many times also. If it's 20% INCLUDING housing and food plus income tax on top of it, I'll leave. On the other hand, if it's 20% sales tax EXCLUDING housing and food (or no income tax or massive income tax reform), I could justify staying.

I've heard that it will go up to 10%. Since this is actually a consumption tax, it will apply to food. It doesn't apply to income.

It is supposed to be an incremental thing - a 2.5% boost one year, another two and a quarter a few years later. At least that is how it is presented in those reports looking 10 to 20 years down the road. Eventually it might indeed wind up at 20% seeing as the debt Japan is under only continues to get bigger.

[canman]

I read where perhaps starting next year the gov't wants all stores to include the price of the consupmtion tax in the price. So when you go shopping the price you see will include the 5% sales tax. Making it much easier for the gov't to slowly increase the tax without consumers really noticing. The only guys really complaining about it are all the 100 yen shops as they feel they have no choice but to bite the bullet and eat the 5yen loss. Everyone else will gladly add to the price and probably gouge a few more yen from unsuspecting consumers.