Land of rising tax: Prime Minister Shinzo Abe moves to tackle Japan's debt
Tuesday 01 October 2013
The latest round of Abenomics in Japan boosted shares in the world’s third largest economy today, offsetting the impact of the first US fiscal shutdown for 17 years.
Prime Minister Shinzo Abe ended months of speculation by raising the country’s sales tax from April next year in a move supporters believe is critical to tackling the country’s national debt.
Abe will also unveil an economic stimulus package to “ease the impact” of the rise, which others claim could derail Japan’s economic recovery. The package is expected to include benefits for low-income earners and incentives to boost investment and wages.
The news came as the Bank of Japan’s quarterly “tankan” survey showed that sentiment among large Japanese manufacturers was at a six-year high. Abe said the survey had been a key factor in his decision to raise taxes.
“To maintain faith in the country, and to pass on a sustainable social security system to the next generation, I have decided to raise the combined national and regional consumption tax rate from 5% to 8%,” he said.
The Nikkei share index closed up 0.2% at 14,484.72, having risen as much as 1.3%. The gains were pared by the US budget stalemate, which President Barack Obama warned would “throw a wrench” into the recovery.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Hacking Trial: Rebekah Brooks, Raisa and a new twist in the saga of a horse fit for a Prime Minister
Israel-Gaza conflict: Palestinian death toll now exceeds 500 – but Israel fights on
Income tax league: Revealed - the UK towns where people pay the most and least tax
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...