The Progress of the Japanese National Consumption Tax

Abstract

On 1 April 1989, a broad-based natioal consumption tax went into effect in Japan. The tax was unpopular, but is gradually being accepted. In the four years since its inception, he tax has undergone a few minor adjustments to facilitate its smooth operaion, but unlike consumption taxes in many jurisdictions, has yet to see a rate rise. This is partly because of public reluctance toward the tax. This article surveys the history of Japan's national consumption tax, analyses the structure of the tax and its reception by taxpayers, and comments on its future.