Economist expects limited impact from Japan's October tax hikeThe impact of the Oct. 1 consumption tax hike from the current 8 percent to 10 percent will be limited as mitigating measures are already in place, according to the chief economist at the Daiwa Institute of Research.“The economy is highly likely to be supported as countermeasures are fully prepared for low-income households and elderly people, who shouldered a heavy burden and slashed their consumption in the previous consumption tax rises,” said Chief Economist Mitsumaru Kumagai in a recent interview.Kumagai said that although world economic growth is slowing, the deceleration is also slow. He added that income and hiring environments are solid in Japan, with capital investment robust among nonmanufacturers.He also predicted that consumption is unlikely to slump after the tax hik安顺社区小学是哪个枣庄
e, considering that last-minute demand has been small so far.There is a possibility, however, that there may be inconsistencies between countermeasures, as they were decided by officials at the Prime Minister’s Office and the details were worked out later, Kumagai said.For example, the promotion of cashless payments is not only meant as an economy-boosting measure but also as a move to broaden adoption of payments by means other than cash, he said.“We have to brace for a situation in which things don’t work out as expected,” Kumagai warned.The upcoming tax hike is meaningful as it will put a brake on Japan’s fiscal deterioration to a certain degree, according to Kumagai.“Japan is in the worst fiscal situation among developed countries,” he said. “The important thing is to have the Japanese people experience a successful tax hike.”According to Kumagai, it is necessary to raise the consumption tax to over 20 percent by the 2030s.“The 10 percent rate is not a goal. It’s crucial to persuade the public (of such a necessity) tenaciously,” he added.TwitterFacebookLinkedInGET THE BEST OF THE JAPAN TIMESIN FIVE EASY PIECES WITH TAKE 5Mail the editorError ReportRepublishingCommenting PolicyJOIN THE CONVERSATIONLATEST BUSINESS STORIESWorkplace equality 'decades away' in Britain as men dominate top jobsEquality for women at work is decades away in Britain, according to a study released Monday that found just 6 percent of chief executives at leading companies are female, with representation in som...Tsai's election victory set to bolster Taiwan's buoyant marketsA winning run for Taiwan's financial markets is set to be reinforced by Saturday's landslide election victory for President Tsai Ing-wen.That's the view of market watchers and analysts, with th...Ex-drug company execs face reckoning in opioid bribery caseThe founder and former top employees of a pharmaceutical company are facing a reckoning for their role in a bribery scheme that prosecutors say boosted sales of a powerful, highly addictive painkil...