Japan Tax Guide - for Beginners -

Is Consumption Tax hike postponed again?


タグ: Japan Tax Guide - for Beginners -

Question: Will the Consumption Tax (C-tax) rate be increased to 10% as originally scheduled?

Answer: Prime Minister decided to postpone a hike in C-tax. It is announced that the new tax rate will be applied from October 2019, instead of April 2017.

It is the second time C-tax hike is delayed. When C-tax rate at 5% was increased to 8% from April 2014, the next tax hike to 10% was assumed starting from October 2015. However, due to difficult economic situation after the first tax hike, it was postponed until April 2017. It was the first delay and it was announced that basically there would never be another delay based on economical judgement, at that time. But finally Prime Minister officially announced the delay, the bill of next postponement will be submitted to the Diet in autumn 2016.

  As a result of the delay of tax hike to 10%, the introduction of reduced tax rate for foods and beverages will be also postponed.

  For more detail, please feel free to contact TOMA Consultants Group.

   TOMA Consultants Group English Site      ⇒  https://toma.co.jp/en/


Question: 消費税率の10%への改正は予定どおり行われますか?

Answer: 首相は消費税増税の延期を決めました。新しい税率は2017年4月でなく、2019年10月から適用されます。