Japan: Consumption tax rate increase is postponed, to October 2019

Japan: Consumption tax rate increase is postponed

The prime minister on 1 June 2016 announced that a scheduled increase in the rate of the consumption tax will be postponed until 1 October 2019.

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The consumption tax had been set to increase to 10%, up from 8%, effective April 2017. However, the prime minister decided to postpone the planned increase in the consumption tax rate given certain concerns about the economy. 


The Japanese government had planned to increase the consumption tax rate in two stages. The first stage to increase the consumption tax rate—from 5% to 8%—was implemented on 1 April 2014. The second increase in the consumption tax rate—from 8% to 10%—was originally due to be effective 1 October 2015, but was then postponed to 1 April 2017. 


Read a June 2016 report [PDF 115 KB] prepared by the KPMG member firm in Japan: Consumption tax rate increase – two and a half year delay

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