Japan rolled out a twice-delayed increase in the sales tax to 10% from 8% on Tue...
TOKYO - Japan rolled out a twice-delayed increase in the sales tax to 10% from 8% on Tuesday, a move that is seen as critical for fixing the country’s tattered finances but that could tip the economy into recession by dampening consumer sentiment.
Television broadcasters showed images of crowds buying items such as wine, cosmetics and jewelry before the increase hit. The bitter memory led Prime Minister Shinzo Abe to twice delay the increase to 10% until Oct. 1. But the higher tax rate will still hit an economy suffering from slowing global demand and bitter trade tensions.
The government has also set aside 2 trillion yen for discounts and shopping vouchers as well as public works spending. Another 300 billion yen will be spent on tax breaks for housing and car purchases.Japan finance minister Aso says economy 'clearly recovering', ready for tax hike
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