CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Japan Agrees Scope Of Reduced Sales Tax Rate

Japan Agrees Scope Of Reduced Sales Tax Rate

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

15 December 2015


The two members of Japan's ruling coalition, the Liberal Democratic Party (LDP) and the Komeito Party, have finally agreed on the range of food products that will continue to be subject to the eight percent consumption tax rate when the headline rate increases to 10 percent in April 2017.

Although the LDP had initially hoped to restrict the lower consumption tax rate to fresh food products only, to limit the loss in annual revenue, it has now acceded to requests from the smaller Komeito Party to provide more help to low-income earners.

It is now proposed that the eight percent consumption tax rate will be retained for all fresh and processed food and for beverages, with the exception of alcoholic drinks. Restaurants will be subject to the ten percent rate.

Funding still has to be found for the lost revenues of around JPY1 trillion (USD8.3bn) per year.

TAGS: tax | value added tax (VAT) | sales tax | fiscal policy | budget | food | tax rates | Japan

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »