Japan Chemical Trading Blog
Japan’s consumption tax raised to 8% from 5% on April 1st
On April 1, Japan’s consumption tax rate raised to 8% from 5%. Considering the fact that the amount of national government debts is growing and now exceeding a quadrillion yen (including those of local governments), this should be a rational decision as one of efforts to reduce the debts as much as possible.
For avoiding an immediate adverse influences on the economy due to the present tax increase, a supplementary budget of over 5 trillion yen has been compiled and for the next half of the year, the budget will be implemented in advance. Such extended spending might obscure the original purpose of the consumption tax increase.
The problem can be solved only by fighting against irrational vested interests and abolishing unnecessary restrictions, thereby restoring growth.