Many Japanese Bosses Support Consumption Tax Hike

by Mary Swire, Tax-News.com, Hong Kong

11 January 2005

Almost half of the bosses at Japan's 105 major companies are in favour of a rise in the 5% consumption tax, with nearly a quarter saying the tax should be doubled, a recent survey has revealed.

The poll, conducted last month by Kyodo News, found that 47 of the respondents (45%) supported a rise in consumption tax, while 24 were of the opinion that the tax should rise to 10%. Those opposed to a consumption tax hike made up 23% of the survey.

Views on how quickly any consumption tax hikes should take place differed. Six of the managers questioned considered three years was an adequate timescale, ten thought a tax increase should be spread out over five years, whilst others favoured a ten-year phased increase. However, some thought that the tax should be raised “immediately."

On the issue of a proposed environmental tax to curb carbon emissions, the managers were much less supportive, with 60% of the respondents opposing such a move on the grounds that it would place a heavy burden on business.

Recommended