Lifting Ban Uncertain over Tax Hike Discounts in Japan
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Tokyo, Aug. 22 (Jiji Press)--Dark clouds are looming over the Japanese government's move to lift a ban on retailers offering discounts to offset the impact of the consumption tax hike from the current 8 pct to 10 pct, slated for October 2019.
This is because of persistent concerns that small and midsize wholesalers may be forced to carry the burden of price cuts by major supermarkets and department stores.
The concerns are fueling complaints about the government's move among ruling party lawmakers supported by small and midsize companies.
The removal of the ban is designed to avoid a drop in consumption, after Japan suffered a fall in demand following the previous consumption tax increase, in April 2014 from 5 pct to 8 pct.
The ruling coalition is expected to consider the matter later this year as part of discussions on annual tax system changes.
[Copyright The Jiji Press, Ltd.]