Tax Hikes Affected Small Firms Most in Heisei: Poll

Economy

Tokyo, April 15 (Jiji Press)--Small business owners in Japan see the consumption tax increases as the factor in the 1989-2019 Heisei era with the most significant impact on their businesses and industries, a survey conducted by Daido Life Insurance Co. showed Monday.

With multiple answers allowed, the hikes in the consumption tax in 1997 and 2014 was cited by 49 pct of such business owners, followed by the Lehman shock, or the global economic crisis caused by the collapse of U.S. investment bank Lehman Brothers in 2008, by 48 pct, the collapse of Japan's bubble economy, by 38 pct, and the series of financial institution bankruptcies in the country in 1997, by 20 pct.

Small business owners appear to have judged the consumption tax increases to have had the biggest impact since it directly influenced consumers, even compared with the major impact of the economic and financial crises.

Meanwhile, the start of Abenomics remained further back, in sixth place, cited by 14 pct of respondents.

Small business owners did not appear to rate highly the effects of Prime Minister Shinzo Abe's comprehensive policy package to revive the Japanese economy, despite the role claimed for it in the current economic growth, which is said to be the longest in the post-World War II period.

[Copyright The Jiji Press, Ltd.]

Jiji Press