Japan Press Weekly

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2012 August 29 - September 4 [ECONOMY]

Consumption tax hike will have negative business impact: 67% of companies

According to a recent research result, 67.1% of Japanese companies expect that a consumption tax hike will negatively affect their businesses.

The research was conducted from July 19 to July 31 by the private research firm Teikoku Databank, which was responded to by 10,637 companies throughout Japan.

Among the 67.1% (7,142 firms) of respondents, 55.5% (5,901) said the impact brought by a consumption tax hike will be “negative” and 11.7% (1,241) said “very negative.”

The concern was the highest in the retail industry (86.6%), followed by the agriculture, forestry, and fisheries industry (79.5%).

Asked if they can completely shift an increase in the consumption tax rate to 10% onto their sales price, 31.1% said they can while 10.1% said they cannot.