Mexican Media Brands
Japan Raises Consumption Tax to 10%
Today Japan boosted its general consumption tax rate to 10% from 8% to help pay for government welfare programs for the country’s aging population.
#economics
Share
Today Japan boosted its general consumption tax rate to 10% from 8% to help pay for government welfare programs for the country’s aging population.
The hike is expected to generate 4.6 trillion yen ($42 billion) in revenue, The Nikkei says. The increase originally was planned to occur in 2014. But Prime Minister Shinzo Abe has delayed it twice.
When Japan raised the tax to 8% from 5% five years ago, the move plunged the country into a two-quarter recession. Consumer spending, which accounts for 60% of Japan’s economy, shrank 5%. Car sales fell 3%.
This time, the government hopes to avert another slump with several stimulus measures, The Nikkei reports. Several options will be finalized later this month.
In the meantime, the government today launched a 5% rewards program for cashless transactions. The scheme involves 500,000 small and medium-sized stores.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.