Japan Raises Sales Tax to 10%

Japan Raises Sales Tax to 10%

Assessment

Interactive Video

Business

University

Hard

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Japanese consumers are reacting to an upcoming tax hike by stocking up on goods like toilet paper. Economists expect the burden on consumers to be less than in 2014 when the tax rose from 5% to 8%. This time, tax rates will vary by product, with most groceries remaining at 8%, while items like alcohol and dining in restaurants will be taxed at 10%. This uneven tax rate may cause confusion among consumers.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How will the new tax rates differ based on the type of goods?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What confusion might arise from the uneven tax rates?

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