Author Topic: Consumption tax hike in Japan  (Read 30 times)

Offline tactac

Consumption tax hike in Japan
« on: October 11, 2018, 03:45:56 PM »
In Japan, consumption tax will hike in next year October. It will be from 8% to 10%. To make things difficult is that only for specific consumption, 8% tax rate still applies. Everyone is confused because the system is too complicated.

Do you think that the consumption tax rate of 10% is high? What is the tax rate in your country?

Online Talk Merit

Re: Consumption tax hike in Japan
« Reply #1 on: October 11, 2018, 04:35:21 PM »
In Japan, the sales tax will increase next October. It will rise from 8% to 10%. The new system has become over-complicated, as some items will remain at the existing 8% rate.

Do you think that a sales tax is too high? What is the rate in your country?

In Britain we have a sales taxation system know as value added tax on goods and services. The general rate is 20%, but it is only levied on the value added by an organisation. This means that the consumer pays the full rate, but an authorised comany charges the consumer the full rate, and has to pass that to the government, but he can deduct any tax that he pays on purchases associated with the supply, or the running of his company. Hence he only pays the tax on the "value added" or net profit he makes from the sale.