Japan’s media were atwitter on June 8 with the long awaited if not completely expected news that the leading political parties had agreed after months of debate and discussion to raise the country’s consumption national sales tax, currently 5% to 10%.. The doubling will come in two steps: the first to 8% from April 2014 and the second to 10% from October 2015.
The current Japanese Diet ends June 21. Prime Minister Noda Yoshihiro has publicly “staked his political life” on achieving passage of the government’s bill to raise the tax. The agreement of the three key parties—Noda’s Democratic Party of Japan DPJ and the main opposition Liberal Democratic Party LDP and Komeito—seems to have delivered Noda a great personal victory.
Read the rest of the story: Japan Confronts Fiscal Reality: Consumption Tax Hike Agreed.