The Diet passed the bills postponing the consumption tax rate increase and other related measures. The bills were submitted to the extraordinary session of the Diet as a consequence of an announcement by the Prime Minister on 1 June 2016 that the consumption tax rate increase should be postponed.
The main points of the bills are summarised as follows:
–The consumption tax rate increase from 8% to 10% is postponed from 1 April 2017 to 1 October 2019.
–The introduction of a multiple tax rate system, where the reduced tax rate of 8% will be applied to sales of food/beverages and certain newspapers under subscription contracts, is postponed from 1 April 2017 to 1 October 2019.
–The invoicing system is postponed from 1 April 2021 to 1 October 2023.
