Japanese government to increase consumption tax.

On the 1st October 2019 the Japanese government are planning to raise the consumption tax from 8% to 10%.


This proposed increase in consumption tax has already been delayed twice by the Japanese Government since 2015 due to political and economic instability.

The Bank of Japan released the results of a survey (April 2019 – June 2019) which shows the confidence level among big manufacturers has deteriorated even further, sinking to its lowest level in three years due to the slowdown of the Chinese economy and US – China trade friction.

As well as the increase in consumption tax, the reduced tax rate of 8% will be applied to certain transactions from 1st October 2019, including:

  • The sale of food/beverage excluding alcoholic drinks and meals in restaurants/through catering services;
  • The sale of newspapers under subscriptions.

At this moment in time it is difficult to say if the economy will be able to withstand this tax increase but the Prime Minister appears to be adamant that the increase will be implemented in October 2019.

We will keep a close eye on this and update you when we know more.

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