Tag: #Japan

The Minister of Finance in Japan, Taro Aso has said that the decision to remote previously proposed ales tax has claimed because of weak increasing of consumer spending. Aso talked on press conference with his co-worker from South Korea, Yoo Il Ho. According to Japanese Finance Minister, Aso had said that although Although economic fundamentals of the Japanese economy are solid, private consumption is not enough power, compared with improving corporate earnings and employment. "He explained that the government decided to postpone the planned tax increase" because of this background." The eight percent of sales tax firstly planned increase to 10 percent in October 2015 year, but then increasing was removed on April 2017 year. On the last week the Cabinet has signed propose about delaying of hiking sales tax for nearest time. The last time when the rate was hiking it was in April 2014 year from 5 to 8 percent. The Ministry said that the Japanese government still seeks to promote fiscal consolidation, as well as the acceleration of expenditure and revenue reforms across the board and increase potential growth by further action on structural issues and the promotion of reform...

The International Monetary Fund (IMF) has announced to continue previously started process of increasing gradual consumption tax. The eight percent rate of gradual consumption tax in Japan first time was planned to increase it for 10 percent in October 2015, but because of current plans, it won't working in near feature to October, 2019. IMF in its 2016 Article IV consultation report for Japan said that the country need to repulse of previously planning rate for 2019 year and instead of to start with previously announced rate, step-by-step increase as fast as possible. IMF said that gradual increasing of consumption tax at least for 15 percent with 0.5-1 percentage point after several time could help to balance targets of objectives of supporting growth and achieving fiscal sustainability in the long run. In the report noticed that the structure of one rate must be save for a long time and worrying about tax impact on low-income households addressed by targeted cash transfers. The stable budget consolidation of 1.5 percent in gross domestic product (GDP) per year to 2030 year will be enough to put the public debt-to-GDP ratio on a downward path, the Fund said. ...

Fitch Rating approved long-term credit rating to June 13, but outlook it in the negative light due to recent Shinzo Abe's decision to postpone an increase the consumption tax rate due to take effect in April next year. Eight percent the rate for consumption tax rate was programme to incrase to ten percent in October 2015, but it impossible to do till October 2019. Abe also said that government provide additional actions of financial in this year for resiting continuing economic uncertainties. In press-release credit agency approved taht the outlook revision followed the delay to the tax hike being made without "identifying any specific offsetting measures. Increasing of consiting tax is an essential element in ficsual strategy of government consoladation, the main aim is to to bring the primary deficit of the general account of the central and local governments into balance by the fiscal year from April 2020 to March 2021 (FY20), against a 3.3 percent deficit in FY15," Fitch added. The agency noted that expected for increasing tax rate to get approximatly 0,8 percent of of gross domestic product for deficit reduction. When announcing the delay, the Government said...

Moody’s said that the prime minister of Japane was delay raising of consumption tax rate. Eight percent of rate in Japane programmed special for incrising to 10 percent in October 2015. Also Moody’s said that In a statement, Moody's commented that "the combined move is credit negative as it raises further questions over the Government's ability and willingness to meet its stated fiscal consolidation goals. By delaying the tax hike, we estimate the administration will forego additional revenues worth around one percent of gross domestic product per year. The stimulus will constitute a further unknown cost." In Flitch Ratings also reported to have expressed some concern over the delay to the tax rate increase, as it could erode confidence in the Government's dedication to its fiscal consolidation targets. On the other hand, in an interview with CNBC, Kim Eng Tan, Senior Director of Sovereign Ratings at S&P Global Ratings, was more understanding of Abe's decision to postpone the tax rate increase. He said it "doesn't spell the end of efforts by the Government at fiscal consolidation," as the hike will still occur when Japanese economic conditions have improved. Until then,...