Japan: Consumption tax rate increase, local taxation for companies

Japan: Consumption tax rate increase

Prime Minister Shinzo Abe earlier this summer announced that an increase in the consumption tax rate (from 8% to 10%) would be postponed by two and one-half years, from 1 April 2017 to 1 October 2019. Consequently, it has been expected that bills to implement the consumption tax postponement would be discussed in an extraordinary session of the Japanese Diet starting in the middle of September 2016.

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The Liberal Democratic Party (LDP) of Japan on 2 August 2016 released an outline of the proposals to be included in the bills. There are also provisions in the proposals with respect to postponing changes to the local taxation for companies.


Read an August 2016 report [PDF 180 KB] prepared by the KPMG member firm in Japan: LDP – Release of Outline of Tax Reform Proposals

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