Japan is to increase its version of consumption tax, or VAT, from 5% to 8% next year. The Japanese action to strengthen it finances, and international confidence in its economy, was welcomed by the OECD which is urging a further raise up to 10% by 2015.
There are a few parallels between the UK and Japan economically. Most tax fans can only dream of 8% VAT and so wonder if the UK government is really getting the best from all the money its takes from a 20% rate. Answers on the back of a postage stamp please.
Tax Barrister, Accountant