Japan is open to further stimulus without tax deduction
Japan’s Prime Minister Shigiro Eshiba on Monday said the government was ready to take further measures to reduce higher US customs duties on the economy, but that he was careful in reducing the country’s consumption tax.
Opposition and some ruling party representatives have called for the government to reduce the average Japanese consumption tax by 10 per cent, excluding 8 per cent of food, and families can help deal with high living costs.
Speaking to Parliament, Ishiba said that the government does not hesitate to take additional measures to reduce excessive American customs duties on the economy. But he said that any measures should be targeted by the most affected families instead of covering the general population; It is impossible to reduce consumption tax in Japan.
Asked whether the government will consider reducing the consumption tax rate on a deputy diet that opposes him, Ishiba said to the Parliament: “It is important to communicate with the most affected groups, instead of taking comprehensive measures. While some countries have resorted to tax -oriented tax deductions, Japan is already suffering from a low tax rate, rapid population aging and difficult economic conditions. He said: “It is easy to talk about reducing taxes, but it is not responsible for not discussing more difficult issues,” he said.
US President Donald Trump saw the use of Japan before the high customs duties announced in April. Analysts, Reuters, are hoping that the Japanese economy will decline for the first quarter. GDP’s initial data will be released on Friday in the first quarter.
A poll conducted by the Private “Tiko Databank” Research Foundation on Monday, 826 companies in April, increased 8.7 percent in the previous year, and in the thirty -seist month.
According to a government survey published on Monday, the Japanese service sector’s confidence in the Service sector declined in April, in the latest suggestion that the US customs duties have begun negatively influence the fragile economy.
The survey showed that the Spread Index – Restaurants and major stores, which measured the faith of the services sector, reached 42.6 points in April, which declined 2.5 points from March to the fourth month. The poll showed the rise of pessimism about fragile recovery, down to 42.7 points to 2.5 points in the confidence index in the next two or three months of economic expectations.
The controversy in the Japanese auto sector is clear; Mazda Word announced its net profit for the fiscal year ended in March and exposed the profit expectations for the current year to March 2026.
Despite these indicators on the weak economy, Japan’s declining economic condition limits the possibility of large cost or permanent tax deductions.
The Japanese public Debt, twice as much as its economy, is the largest in major countries as a result of contracts for heavy costs, including the cost of social welfare.
The cost of financial assistance to this massive government loan is expected to increase, with the Bank of Japan to reduce its bond purchases and enhance its monetary policy by increasing short -term interest rates.
Meanwhile, the Japanese “Nikki” index ended Monday, which is expected to enter into an agreement between the two major economies after strengthening progress indicators in trade talks between the United States and China.
The “Nikki” index closed 0.38 percent to 37644.26 points, after he traded in the session. The wide “Topics” index closed by 0.31 percent to 2742.08 points, recorded a 12 -day gain series, which was long since October 2017.
