Category Taxation in Japan

IMF Backs Japanese Prime Minister on Tax Reform

July 15, 2010 Taxation in Japan

Asia21_026Japanese taxpayers could experience a significant increase to the national Sales Tax rate in the near future, after the International Monetary Fund called for fiscal reforms.

Japan’s political climate has been turbulent recently following the Prime Minister’s Sales Tax rate hike proposal. Naoto Kan claimed that a doubling of the current 5 percent Sales Tax rate would be an ideal step in addressing the nation’s ballooning debts, which have reached 218 percent of GDP. The tax issue was seen as a significant reason behind Naoto Kan’s political party suffering a defeat at the recent Japan Upper House elections...

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Tax Hikes Reason for Japanese Election Loss

July 12, 2010 Taxation in Japan

Korea-Japan summit talks in Toronto, CanadaJapan’s ruling political party has suffered a major setback in its plan to instate tax hikes, after experiencing a defeat at the national Upper House elections.

According to media exit-polls, the Democratic Party of Japan (DPJ) has won fewer than 50 seats of the contested 121 seats in the Upper House Government elections, held on June 11th. The result has been attributed to the party’s proposal of doubling the national sales tax rate to a level of 10 percent. The DPJ previously stated that it was aiming at attaining at least 54 seats. Official election results, scheduled for release by June 13th, are expected to confirm that the DPJ will hold a maximum of 110 seats of the total 242 Upper House seats.

Naoto Kan, Prime Minister of Japan and DPJ leader, has stated that he intends to stay ...

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Japan Considering Sales Tax Hike

June 21, 2010 Taxation in Japan

Watermark on Japanese 10,000 Yen Note, Macro PhotoThe Japanese Government is considering doubling the national Sales Tax rate, in order to curb the national public debt while retaining current levels of public services.

Late last week Japanese Prime Minister Naoto Kan declared the need for the Japanese Government to carryout comprehensive reforms to the nation’s tax system and drastic cuts to public spending, and called opposition parliamentary members to join in supporting his proposal. Naoto Kan also revealed that he is willing to consider doubling the current 5 percent national Sales Tax.

The Prime Minister revealed that an exact tax rate will be finalized by March 2011, and for the purposes of initial investigations, the 10 percent rate will be used as a “reference point”...

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Japan to Consider Several Tax Increases

February 15, 2010 Taxation in Japan

Kan Naoto, MinshutoTo curb falls in investor confidence and possible national credit ratings downgrades, the Japanese Government will begin discussion on the feasibility of increasing several tax rates, including income, corporate and consumption taxes.

Speaking at a press conference on February 13th, Naoto Kan, Finance Minister and Deputy Prime Minister of Japan, stated that he will be initiating a “full-fledged debate” on taxes in March, and hopes to have a concise tax reform plan completed by June. During the conference indications were given that income tax, personal taxes, environmental taxes and a raised consumption tax would the main issues of the debate...

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Japan Releases Annual Tax Guidelines

December 23, 2009 Taxation in Japan

Yukio Hatoyama, Japan's next leaderOn December 22nd, the Japanese Government revealed its tax reform plan for the fiscal year beginning April 1st, 2010.

The newly published tax guidelines are aimed at decreasing Japan’s public debt figure, which is currently at an approximated 180 percent of GDP. In order to achieve the goal, the tax plan will attempt to support Prime Minister Yukio Hatoyama’s earlier announced intentions of maintaining Japanese Government Bond issuance at JPY44 trillion (USD483 billion).

The most controversial announcement of the tax reform is replacing surcharges on gasoline sales with a tax charged at the same rate. The move comes contrary to Prime Minister Yukio Hatoyama’s election campaign where he promised to abolish the gasoline levy...

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