Take our user survey and make your voice heard.
Prime Minister Yoshihiko Noda has proposed putting off the first phase of the planned consumption tax hike by six months from October 2013 to April 2014.
Noda made the proposal late Thursday at a meeting of the ruling Democratic Party of Japan's tax reform panel. The panel adopted the plan, under which the consumption tax will be hiked from the current 5% to 8% in April 2014 and to 10% in October 2015.
Noda has been under intense pressure from within the DPJ as well as opposition parties who say a hike in the consumption tax will have a disastrous effect on the economy.
Nine members of the DPJ have already said they plan to quit the party in opposition to the plan to hike the consumption tax because they say it reneges on the party's 2009 election manifesto.
Meanwhile, opposition Liberal Democratic Party (LDP) leader Sadakazu Tanigaki said the week's developments show that the DPJ is crumbling from within, NTV reported. He called on Noda to seek a manadte from the people in an election.
© Japan Today
11 Comments
Login to comment
MaboDofuIsSpicy
Excellent, because he will be put out to pasture before that.
some14some
why? no reason, it won't make any difference.
issa1
Flip flop no-da policy.
smithinjapan
The reason is simply to gauge public opinion, but it's too late for that. Noda will be out by June and Japan will have yet ANOTHER PM in as many years.
herefornow
Fantastic. Over two more years before Japan starts raising its tax base. Meanwhile it will just keep spending and borrowing to did its hole even deeper.
Frederick Gundlach
It amazes me how a whole country can think it can run a government old age pension scheme off no money. All the other countries have these 15% to 20% taxes to do it. Even the United States' FICA (Federal Insurance Contributions Act) is 15.3% of the first $110,000 or so.
Kakarot9
@Frederick
Japan's taxes are already very high. Japan has resident tax and extremely high car taxes on top of the usual taxes such as consumption tax, property tax, income tax, health insurance tax, and pension payments. Also, the pension that Japan gives out is very, very small. This is how they can afford to give a pension. Although, many Japanese are worried that the retirement age will be raised significantly or that eventually the pensions will run out.
I don't own property and I pay out 26% of my income in taxes at least.
Shumatsu_Samurai
Kakarot9
Wrong, according to the Economist:
Japan has the lowest tax take of any country in the OECD, at just 17% of GDP
http://www.economist.com/node/21538745
Taxes can and must go up.
Patrick Hattman
Looks like it might go into effect about 2 years after Noda is out of office. Like it or not, the tax rise will happen. It would be better for those who have aspirations for the highest positions in Japan's government to allow Noda to take the fall for it.
globalwatcher
Taniguchi knows NO, NOTHING, NADA!
I congratulate this delay as the Euro is still very shaky.It has nothing to do with Noda. Hopefully, the Euro mess will be resolved by then. US automatic public spending cut WILL start in 2013.
globalwatcher
Kentaro, you should be thankful as you are in heaven, Japan.. Please come here and see how much we are paying here in US. Additing all your taxes, do you think you are working free for the government until 4/15? I am retired now, but I used to work free (working for taxes) until 4/15 That is a 1/3 of annual gross income that is not including property tax, vehicle registration (car tax) and others. Go to Sweden, Norway, Denmark, they are paying much much more and higher than the rest of us. Your tax is relatively law compare to others. FYI