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▼ Retailers Hail Postponement Of Hike
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The Yomiuri Shimbun
Prime Minister Shinzo Abe’s decision to postpone the planned consumption tax hike has been welcomed by some industries —including retailers, which have been suffering from sluggish personal consumption.
However, business groups that pushed for the planned tax hike to be implemented expressed concern over the impact the postponement may have on financial reform.
“We’re obliged to pursue fiscal health, but it could end up being pie in the sky if we cannot achieve economic growth,” Seven & i Holdings Co. President Ryuichi Isaka said in a statement released on Wednesday. “We welcome the decision.”
The retail industry has struggled to deal with consumption tax increases in the past.
“At this point in time, I’m just hoping consumer confidence will recover in the next 2½ years,” said a manager at a supermarket in Tokyo.
The postponement has also been well received by the beverage industry.
“[The tax hike] would have a big impact on consumption. The decision this time was unavoidable,” said Kirin Holdings Co. President Yoshinori Isozaki.
A tax hike of even 2 percent would have had a profound impact on the purchases of expensive products, such as houses and automobiles.
Daiwa House Industry Co. President Naotake Ohno welcomed the delay, saying, “When the consumption tax was raised in 2014, the number of housing starts for owner-occupied homes dropped for 15 consecutive months on a year-on-year basis.”
A member of the automobile industry said, “We’re clear of an adverse impact for now.”
In contrast, Japan Chamber of Commerce and Industry Chairman Akio Mimura said, “[The tax hike] is not good for consumption in the short run, but is still necessary to maintain the social security system and secure revenues to implement policies.”
Japan Association of Corporate Executives (Keizai Doyukai) Chairman Yoshimitsu Kobayashi said, “It’s necessary to objectively examine whether we are just passing our debts onto our children and grandchildren.”
Japan Business Federation (Keidanren) Chairman Sadayuki Sakakibara said “the government should set the right economic conditions” so the tax hike is not postponed again.
The consumption tax hike is now scheduled for October 2019. With the Tokyo Olympics and Paralympics to be held the following year, some observers say the hike may put a chill on the expected “special procurement demand” from the Games.
“Sales of TV sets or video recorders could slow down at a time when we should be entering a busy season,” a member of the electrical machinery industry said.
A manager at a home appliance mass retailer in Tokyo expressed concern, saying, “The tax hike is going to happen at a time when we can expect demand to go up from people replacing their products with newer ones.”
Prime Minister Shinzo Abe’s decision to postpone the planned consumption tax hike has been welcomed by some industries —including retailers, which have been suffering from sluggish personal consumption.
However, business groups that pushed for the planned tax hike to be implemented expressed concern over the impact the postponement may have on financial reform.
“We’re obliged to pursue fiscal health, but it could end up being pie in the sky if we cannot achieve economic growth,” Seven & i Holdings Co. President Ryuichi Isaka said in a statement released on Wednesday. “We welcome the decision.”
The retail industry has struggled to deal with consumption tax increases in the past.
“At this point in time, I’m just hoping consumer confidence will recover in the next 2½ years,” said a manager at a supermarket in Tokyo.
The postponement has also been well received by the beverage industry.
“[The tax hike] would have a big impact on consumption. The decision this time was unavoidable,” said Kirin Holdings Co. President Yoshinori Isozaki.
A tax hike of even 2 percent would have had a profound impact on the purchases of expensive products, such as houses and automobiles.
Daiwa House Industry Co. President Naotake Ohno welcomed the delay, saying, “When the consumption tax was raised in 2014, the number of housing starts for owner-occupied homes dropped for 15 consecutive months on a year-on-year basis.”
A member of the automobile industry said, “We’re clear of an adverse impact for now.”
In contrast, Japan Chamber of Commerce and Industry Chairman Akio Mimura said, “[The tax hike] is not good for consumption in the short run, but is still necessary to maintain the social security system and secure revenues to implement policies.”
Japan Association of Corporate Executives (Keizai Doyukai) Chairman Yoshimitsu Kobayashi said, “It’s necessary to objectively examine whether we are just passing our debts onto our children and grandchildren.”
Japan Business Federation (Keidanren) Chairman Sadayuki Sakakibara said “the government should set the right economic conditions” so the tax hike is not postponed again.
The consumption tax hike is now scheduled for October 2019. With the Tokyo Olympics and Paralympics to be held the following year, some observers say the hike may put a chill on the expected “special procurement demand” from the Games.
“Sales of TV sets or video recorders could slow down at a time when we should be entering a busy season,” a member of the electrical machinery industry said.
A manager at a home appliance mass retailer in Tokyo expressed concern, saying, “The tax hike is going to happen at a time when we can expect demand to go up from people replacing their products with newer ones.”
- June 3, 2016
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