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 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits record low as popularity suffers in wake of Ukip sex scandal
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Germany sees 'visible rise' in support for far-right extremism in response to perceived 'Islamisation' of the West
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...