Japan Combats National Debt with Whopping Increase in Sales Tax to 10 % (EWJ)
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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.
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.
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