Fashion

Japan business lobby urges sales tax hike to proceed as planned

“With just a few months left before October, it’s impossible to delay it again.”While a tax hike could hurt growth, it would also help Japan achieve fiscal reform in the long run, which will more than offset the near-term pain, Mimura told Reuters in an interview conducted on Wednesday.คำพูดจาก สล็อตเว็บตรง

Japan needs revenue to pay for bulging welfare costs to support an ageing population and curb the industrial world’s heaviest public debt burden, which is twice the size of its $5 trillion economy.The government plans to spend 2 trillion yen (14 billion pounds) in offsetting measures, which Mimura said should help ease the tax hike pain “to a considerable degree”.Further delays could cause confusion to many Japanese firms that have made significant preparations to overcome the shift to the 10% sales tax, Mimura added.His view is shared by other Japanese corporations: more than 60% of firms called for the sales tax to rise as planned, a Reuters Corporate Survey showed last month, although they felt that additional stimulus was needed to cushion the blow on the economy.Michitaka Sawada, chief executive of Kao Corp, said recently the company was prepared for a rush in demand before the hike, working with suppliers and preparing its warehousing and transportation accordingly.”We are so prepared for this. You need to be ready in advanceคำพูดจาก สล็อตเว็บตรง. It would be too late if you weren’t ready by now.”Abe has repeatedly said he would proceed with an increase in the sales tax rate to 10% from 8% in October unless the economy was hit by a severe shock.But some lawmakers and close allies of the premier have suggested a postponement on concerns it could tip Japan into recession. The last sales tax hike in 2014 hit consumers hard and triggered a deep downturn.

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