Region:
Asia
Category:
Economy

Japan increased VAT from 5 to 8% and bet to break deflation

The aliquot of the consumption tax was raised for the first time in 17 years and it’s estimated to raise additional $ 49 billion dollars

Japan began the new fiscal year, and it has produced the first rise in 17 years of consumption tax, which rose from 5% to 8%.

The Japanese government estimates obtained in 2014 fiscal year about 49 billion additional dollars from the tax increase, and this figure is expected to reach 78 billion dollars in the next fiscal year.

This money will go to social welfare policies whose aim is to deal with the aging population; including pension programs and health care are included.

Furthermore, the possibility that the consumption tax is 10% from October 2015 shuffles.

Japanese Prime Minister Shinzo Abe, said that will study the various economic indices between July and September before deciding whether to proceed with the climb, and has promised to make a decision later this year.

Tankan Report BOJ predicts a loss of business optimism after the consumption tax hike.

traslation: Belén Zapata