Post by account_disabled on Dec 31, 2023 22:28:23 GMT -6
I want everyone to imagine how we would feel. And how to plan your finances? If you have to wake up the next day with higher prices for goods and services The incident happened in Japan in early October. This is because Japan has raised the consumption tax from 8% to 10% after postponing the tax increase twice. This tax affects almost every type of consumer product. Except for some types, such as fresh food and food bought to eat at home. and newspapers or magazines that are published more than 2 or more times per week, etc., that will maintain the same tax rate. The Japanese government estimates that it will generate additional income for the Japanese government of approximately 5-6 trillion yen per year.
The main purpose of this increase in consumption Buy Bulk SMS Service tax is to pay off government debt. In 2018, Japanese government debt reached 1,301 trillion yen, or approximately 237% of GDP. It is also used to support economics. education, child care, and social welfare expenses as well. As you know, raising the consumption tax will have a direct impact on the purchasing power of consumers and the national economy, but why is Japan forced to allow it? Take risks and continue with the policy of increasing taxes. And why is Japan's government debt so high? This story goes back to the 1980s, when the Japanese economy grew by leaps and bounds and was the envy of many countries around the world.
However, the real estate and stock market bubbles in 1989 resulted in land prices and securities prices in Japan has declined sharply. This was considered the starting point for Japan to face a sluggish economic situation and enter the era known as 'The Lost Decade', which lasted for more than 20 years. That is, during the period 1991-2018, the Japanese economy grew on average only 1% per year compared to the average growth rate during 1981-1990 which was approximately 4.5% per year. During that period The Japanese government is making every effort to support the country's economic growth. Especially reducing policy interest rates to stimulate the economy. This has been the case since raising interest rates to stop the overheating of the real estate and stock markets in 1989, before the bubble burst. Japan's policy interest rate has always been in a downward direction and is currently at a negative level.
The main purpose of this increase in consumption Buy Bulk SMS Service tax is to pay off government debt. In 2018, Japanese government debt reached 1,301 trillion yen, or approximately 237% of GDP. It is also used to support economics. education, child care, and social welfare expenses as well. As you know, raising the consumption tax will have a direct impact on the purchasing power of consumers and the national economy, but why is Japan forced to allow it? Take risks and continue with the policy of increasing taxes. And why is Japan's government debt so high? This story goes back to the 1980s, when the Japanese economy grew by leaps and bounds and was the envy of many countries around the world.
However, the real estate and stock market bubbles in 1989 resulted in land prices and securities prices in Japan has declined sharply. This was considered the starting point for Japan to face a sluggish economic situation and enter the era known as 'The Lost Decade', which lasted for more than 20 years. That is, during the period 1991-2018, the Japanese economy grew on average only 1% per year compared to the average growth rate during 1981-1990 which was approximately 4.5% per year. During that period The Japanese government is making every effort to support the country's economic growth. Especially reducing policy interest rates to stimulate the economy. This has been the case since raising interest rates to stop the overheating of the real estate and stock markets in 1989, before the bubble burst. Japan's policy interest rate has always been in a downward direction and is currently at a negative level.