Consumption tax 10% for 1 week Focus on reducing consumption decline by reducing points | NHK News

Consumption tax 10% for 1 week Focus on reducing consumption through point reduction, etc. October 8th 4:54

One week has passed since the consumption tax rate was raised to 10%. Amid economic indicators that indicate the possibility that the economy was already in a recession before the tax increase, the focus will be on how much economic measures such as point reductions for cashless payments can reduce the decline in personal consumption.

The consumption tax rate was raised to 10% on the 1st of this month, and a “reduced tax rate” was introduced to keep the tax rate at 8% only for “food and drinks excluding alcoholic beverages and restaurants”.

In addition, as a measure against the economy, a system has been started in which a maximum of 5% can be returned in points when cashless payments are made at small and medium-sized stores.

One week has passed since the tax increase, and department stores and consumer electronics mass retailers have seen some declines in sales due to a reaction to last-minute demand, but there is also a significant change in the number of customers visiting the store due to the effects of the reduced tax rate and the point return system. There are also small and medium-sized stores.

On the 7th, according to the “Economic Trend Index” released by the Cabinet Office on August 7, the economic judgment was revised downward to “Deteriorate” for the first time in 4 months.

The focus will be on how far the economic measures such as point reduction can suppress the decline in personal consumption in the form of the possibility that the economy was in a recession phase before the tax increase.

Expert "Possibility to affect gradually"

Regarding the economic impact of the consumption tax hike, Daiwa Institute of Research Shunsuke Kobayashi, senior economist said, “Since considerable measures have been implemented, such as cashless payment point reduction and premium gift certificates, the backlash after the tax increase due to last-minute demand has been moderate. However, there will still be a certain degree of reaction, and there is no possibility that it will gradually affect the future, and we will determine how much it will hit consumption after October. I need it. "