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smbu2000 said:
TruckOSaurus said:
Can someone fill me in on this new tax business?

On Oct. 1st, Japan increased the consumption tax from 8% to 10%. The last tax hike was in 2014 and it increased from 5% to 8% and apparently caused the economy to contract. 

https://www.japantimes.co.jp/news/2019/09/30/business/economy-business/japan-consumption-tax-hike-analysts-economy

“Raising the consumption tax will naturally impose a burden on households. … There are various views on whether the impact will be quite light or somewhat deep, like what happened in 2014,” said Shinichiro Kobayashi, an economist at Mitsubishi UFJ Research and Consulting Co.

When the government raised the consumption tax to 8 percent from 5 percent in April 2014, the first jump in 17 years, the economy was dealt a serious blow, with GDP contracting two quarters in a row between April to September that year. The damage was enough for Abe to delay a planned increase to 10 percent in 2015.

Thanks for the info.



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