Japan Combats National Debt with Whopping Increase in Sales Tax to 10 % (EWJ)
Tweet Send to a Friend
iShares MSCI Japan Index ETF (NYSE: EWJ) is seen lower today as shares in Japan declined. The decline comes as Japan's lower house voted to double the country's sales tax to 10 percent over three years.
The efforts to raise taxes are meant to combat the countries rising national debt. But the vote wasn't without political controversy, as Prime Minister Yoshihiko Noda faced challenges from rivals who say the tax hikes will harm the economy. The bill still has to pass through the upper house, but major challenges there aren't expected. As a result of the bill, sales tax will rise from 5 percent to 8 percent in 2014, then to 10 percent in 2015.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The efforts to raise taxes are meant to combat the countries rising national debt. But the vote wasn't without political controversy, as Prime Minister Yoshihiko Noda faced challenges from rivals who say the tax hikes will harm the economy. The bill still has to pass through the upper house, but major challenges there aren't expected. As a result of the bill, sales tax will rise from 5 percent to 8 percent in 2014, then to 10 percent in 2015.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Japan to Stem Bond Volatility as Aggressive Fiscal Policy Takes Hold (FXY) (EWJ)
- Soros, Others Dump Gold as Metal No Longer 'Safe Haven'
- Gold Pares Losses as Fed Tapering Questioned (GLD) (IAU) (SLV)
Create E-mail Alert Related Categories
ETFs
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
