real-time news and commentary for investors
Tuesday, Oct 1
Japan confirms hike in sales tax to 8%
- As widely expected, Japan will go through with a plan to raise sales tax in April to 8% from 5%, a move that is set to raise ¥8T.
- Prime Minister Shinzo Abe is expected to unveil a ¥5T stimulus package later today to offset the effect of the tax rise. The measures will reportedly include a cut in corporate tax and further public-works spending.
- Still, the VAT rise is Japan's first serious attempt in 15 years to rein in its public debt, which recently topped ¥1,000T and is more than twice the size of GDP.
- Nikkei +0.2%, USD-JPY -0.3% to ¥97.95
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