Tax & Accounting Blog

Japan – No Lower Rate for Food in 2014

Indirect Tax, Transaction Tax, VAT Tax Rates February 6, 2013

Japan’s New Komeito ruling bloc announced on 23 January that it will not be implementing a reduced rate for foods and other daily essentials when the 5 percent sales tax is raised to 8 percent in fiscal 2014 as some had hoped. The government instead plans to hand out cash allowances to help low-income households with the added expense of the tax increase. A reduced rate is being considered, but not promised, for 2015 when the rate is scheduled to rise again to 10%.