Japan's consumption tax has risen to 8 percent from 5 percent, the first increase in 17 years.
Many retailers and vending machines began charging higher prices from midnight on Tuesday.Rail operators will reprogram ticket vending machines during the night. New prices will take effect from the first service on Tuesday.
The government estimates that the sales tax will bring in about 5 trillion yen, or about 49 billion dollars, in fiscal 2014. That figure is expected to reach about 8 trillion yen, or about 78 billion dollars, in fiscal 2015.
The money will be spent on social welfare, including healthcare and pension programs, to deal with the aging population.
But some economists have warned that the tax increase may slow consumption.
Source: NHK
The government estimates that the sales tax will bring in about 5 trillion yen, or about 49 billion dollars, in fiscal 2014. That figure is expected to reach about 8 trillion yen, or about 78 billion dollars, in fiscal 2015.
The money will be spent on social welfare, including healthcare and pension programs, to deal with the aging population.
But some economists have warned that the tax increase may slow consumption.
Source: NHK
