Japan Plans to Double Consumption Tax Rate by 2015 Japan has proposed to introduce new reduced Consumption Tax (VAT) Rate for basic goods, in an effort to assuage the impact of the planned tax rate to 10% by 2015. The increase in the rate will help boost economic growth, generate significant revenue and strengthen and sustain social security benefits, reports Nair & Co.â€™s International Tax Team.
The new reduced Consumption Tax rate is being introduced in two phases:
Consumption Tax Rate 12% Phase 2: 10%
Phase 1: 8%
Current: 5% 6% 4% 2% 0% Upto 1 Apr 2014
From 1 Apr 2014 -
From 1 Oct 2015 -
In order to economically meet the tax compliance obligations in the future, Nair & Co. advises companies operating in Japan to cautiously plan their business processes and financial system competence.
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Published on Feb 21, 2014
Japan has proposed to introduce new reduced Consumption Tax (VAT) Rate for basic goods, in an effort to assuage the impact of the planned ta...