Japan to Exempt Some Sales Tax Hike
World Economy

Japan to Exempt Some Sales Tax Hike

Japan may exempt some food and beverages from a planned increase in the sales tax, government sources said.
Prime Minister Shinzo Abe’s government plans to raise the nationwide sales tax to 10% in 2017 from 8% currently to pay for rising healthcare costs, but many politicians worry about the impact on low-income households, Reuters reported.
The government will use a national identity number system it plans to introduce for tax and social security to administer tax rebates on purchases of some food and drinks, the sources said.
The number system is similar to a social security number in the United States.
The finance ministry could submit its proposal on the tax rebate as early as next week, the sources said. An official from the ministry was not immediately available for comment.
The Yomiuri reported on Saturday that for low-income earners, the rebate could be worth as much as the 2 percentage point increase in the sales tax. The newspaper did not cite the source of its information.
There could be some opposition to offering tax rebates because this would cut tax revenue, the Yomiuri reported.
The finance ministry is still uncertain how to administer a tax rebate system of this nature, so there are still a lot of details that need to be worked out, the Yomiuri said.

Short URL : https://goo.gl/bhsRCO
  1. https://goo.gl/TqF2oZ
  • https://goo.gl/C6LyN3
  • https://goo.gl/tDkiEo
  • https://goo.gl/lLx0Nn
  • https://goo.gl/557HPy

You can also read ...

Business confidence fell to its lowest level since August 2013 and around 7% of companies expected a contraction.
According to data from the International Monetary Fund in...
China Warned of Ballooning SOEs
Former chief of the World Bank Robert Zoellick cautioned China...
Shrinking unemployment in the US, Japan and the eurozone finally forces companies  to lift wages to retain and attract staff.
Workers in the world's richest countries are getting their...
Saudi Sovereign Fund Secures $11 Billion Loan
Saudi Arabia's sovereign wealth fund said Monday it had...
New Zealand Q2 GDP Growth Picking Up
New Zealand’s economic growth is expected to have accelerated...
Lira Eases Against Dollar
Turkey’s lira weakened against the dollar on Monday as...
By 2025 more than half of all current workplace tasks  will be performed by machines.
Robots will handle 52% of current work tasks by 2025, almost...
Myanmar Businesses Want Lower Taxes
Myanmar businesses are urging the government to lower the...