Japan PM Abe likely to delay second round of planned sales-tax increases - financial press
Recent commentary on the planned sales tax hike:
- On Nov 10th Fin Min Aso reiterated decision on sales tax hike depended on economy
- On Nov 10th Approx 50% of polled respondents in Japan call for postponement of sales tax hike
- On Nov 7th Reports circualted that Japan PM Abe was still mulling extra budget to support the economy, continue to examine July-Sept economic data. If a second sales tax increase was implemented, policy must avoid hurting the recovery
- On Nov 6th Fin Min Aso: Govt should raise sales tax again next year as scheduled
- On Nov 4th Japan Govt advisory panel member Ito: Delay in increasing Japan sales tax would have big political costs (Japan Econ Min Amari: Ito and Kato believe that planned sales tax hike could remain on course while Hamada and Ogiue believe that sales tax hike should be postponed)
- On Nov 3rd New Komeito (coalition) policy Chief Ishii: Raising Japan's sales tax to 10% as planned would be best- On Oct 21st Japan PM Abe advisor Honda reiterated his view that planned sales tax increase should be delayed until Apr 2017 as it could pose major risk to the economy
- On Oct 21st reports circulated that Japan was considering stimulus regardless of decision on taxes
- On Oct 19th reports circulated that Japan PM Abe was hinting at delaying sales tax increase as sales tax increase would be meaningless if it damages the domestic economy were too much.
- On Oct 8th Japan LDP ruling party lawmaker noted that the next phase of the sales tax hike should be put off to Apr 2017, proceeding as planned would ruin Abenomics
- On Oct 7th BOJ Gov Kuroda noted that the virtuous cycle of economic activity continued to operate firmly. Sales tax impact on consumption was easing expect in auto and durable sectors
- On Oct 2nd Japan PM Abe stated that it was true that April sales tax increase led to 7.1% contraction in Apr-June GDP
- On Oct 1st Japan PM Abe: Raising sales-tax would maintain confidence in Japan but must watch effect of sales tax rise on the economy
- On Sept 8th Japan PM advisor Honda: Would be a mistake to raise sales tax in the spring of 2015
- On Sept 8th Japan Govt advisor Hamada: Raising sales tax by 1% /year was an option as was delaying the next phase of tax hike by a year
- On Sept 5th Japan Econ Amari: Japan PM Abe would be more cautious than before on sale-tax increase decision
- On Sept 1st Report circulated that BoJ officials saw PM Abe raising sales tax as planned next year in order to maintain confidence in govt's finances. BoJ officials would be ready to boost stimulus after tax hike
- On Sept 1st govt advisor Honda: Next phase of planned sales tax increase should be delayed into 2017 as prior April hike hit the economy harder than expected