Japan Press Weekly

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2013 September 11 - 17 [ECONOMY]

80% of retailers fear negative impacts from consumption tax hike

A survey result released by a private credit research company on September 12 shows that about 80% of retailers fear negative impacts on their businesses from the planned consumption tax hike.

Teikoku Databank, Ltd. in August surveyed 22,760 companies across Japan concerning the possible impact caused by an increase in the consumption tax rate scheduled for April next year, and 48.8% of them responded to the survey.

Among respondent companies, 55.3% said that if the consumption tax rate is raised, it will adversely affect their business.

As for the percentage of companies expressing concern about a possible blow to their business, the retail industry presented the highest percentage, 80.5%, followed by 73.3% in the farming and fishing industry and 61.2% in the real estate industry.

By business scale, 55.7% of small businesses and 58.1% of tiny businesses worry about a decrease in profits.