It was reported on 19 June 2012 that the Japanese Prime Minister has been successful in reaching a deal with opposition parties, and, in particular, the Liberal Democratic Party (LDP), on his plan for future hikes to the country’s consumption tax rates.
Under the government’s plan, consumption tax will increase from its present rate of 5% to 8% in April 2014, and rise again to 10% in October 2015. After full implementation, the government has estimated that the tax increases would provide additional revenue of some JPY13.5 trillion (USD171.5bn) per year, or 2.8% of Japan’s gross domestic product (GDP).
