Postponement of VAT increase impacts other fiscal reform

Nikkei Online reports on June 2 that the second postponement of the VAT increase to October 2019 is likely to have an impact on other planned fiscal reforms as well.

The government and ruling parties are also investigating postponement of the planned new automobile tax, which was scheduled to be introduced simultaneously with the VAT increase in April 2017. Also, with no VAT-increase next year, the diversified consumption tax rates for foodstuffs is also off the books for the time being.  Additionally, the tax-break measure on housing loans, which was meant to support the economy at a time of fiscal increases until June 2019 is presently under consideration for an extension beyond October 2019, the date the VAT increase is planned now.

Source: Nikkei Online, 自動車新税の先送り検討 増税再延期、税制改正に余波 (June 2, 2016)

EU-Japan Centre's News

Please take a look at the New Year's Special Column written by Mr. Tanabe, Managing Director of the…
The EU-Japan Centre is pleased to start a new weekly service by publishing brief summary of the…
The EU-Japan Centre’s office in Tokyo is regularly publishing "Industry and Policy News”. By…
The EU-Japan Centre is currently calling for expert report proposals for its "About Japan"…
Boost your R&D team by hosting a top Japanese university student of technical disciplines. Open…


The Space.Japan Helpdesk, invites you to participate in a webinar co-organized with METASTARS. Space. Japan Helpdesk aims to support cooperation between Europe and Japan in space-related Industries…
This summer exhibited again extremely high temperatures worldwide, resulting in significant water loss in freshwater reservoirs. As climate change amplifies, it is warranted to protect our vital…
Subscribe to
our newsletters

The EU-Japan Centre currently produces 5 newsletters :

  • EU-Japan NEWS - our flagship newsletter covering the Centre's support services, information about EU (or Member States) - Japan cooperation
  • Japanese Industry and Policy News
  • “About Japan” e-News (Only available for EU companies / EU organisations)
  • Japan Tax and Public Procurement Weekly Tender Digest (Only available for EU companies / EU organisations)
  • Tech Transfer Helpdesk Newsletter