Friday, October 4, 2019
Japan's sales tax rose from eight to 10 percent on October 1, 2019, following two previous delays to the hike.
According to the Government, the rate rise is designed to "secure stable revenue and to make a social security system for all generations which is sustainable." The revenue raised will be ring-fenced for funding improvements to the social security system.
The rate was last increased in April 2014, from five percent to eight percent.
To mitigate the impact of the rate rise on lower income groups, a reduced eight percent rate will apply to the supply of foods and drinks – with the exception of liquors and restaurant services – and to subscription newspapers issued twice or more a week.