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Ten percent sales tax eyed for Japan

Wednesday, June 01, 2011 - 01:16

June 1 - Japan may raise the country's consumption tax rate in two stages, starting with a hike to 7 to 8 percent in 2013, from the current 5 percent, and then to 10 percent by 2015. Toshi Maeda reports.

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Japan could see sales tax rate doubling from the current 5% to 10% within five years. According to the Nikkei financial daily. Tokyo plans to raise Japan's sales tax in two stages starting with the hike to seven or 8% in 2013. And then to 10% by the year 2000 feet team. The government is scheduled to unveil its tax reform plans on Thursday for a parliamentary debate. Raising Japan's sales tax has been widely discussed in recent years as a way to secure funds for growing Social Security cost and service -- dead already twice its annual economic out -- The much quake and tsunami that devastated northern Japan gave a boost to tax -- proponent. With some politicians calling for the sales tax revenue to be used to pay for the reconstruction of the country. But critics say a tax hike would be -- time given the supply currently outstrips demand in Japan. They also -- the country's last consumption tax hike in 1997. Which was followed by an economic downturn. Japan's current 5% sales tax rate -- among the lowest in developed nations. -- by the Reuters Tokyo.

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Ten percent sales tax eyed for Japan

Wednesday, June 01, 2011 - 01:16