Prime minister of Japan, Shinzo Abe has until Oct. 7th to make a decision on a Japanese Sales-Tax raise that will, if instated, take place in April 2014.
If Abe decides “yes” on the sales-tax, Japan’s sales-tax will go from 5% to 8%. Abe also has the authority to postpone the decision or scratch the idea altogether.
A poll by the Nikkei newspaper showed 17% of participants support the 3% bump for April, 55% agree that the tax should be raised but want the government to be more flexible on the timing, and 24% of people opposed the tax increase altogether.
If this initial plan goes through, it could set up the Japanese sales-tax to be at 10% by October 2015.
Growth In Japan
The world’s third largest economy, Japan, is expected to grow 2.6% in the fiscal year to March 2014. This is according to Reuters who also says that there is a 60% chance that the BOJ will expand their QE efforts by mid-next year, according to reports earlier this month.
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