|
Jacobs & Burns Spokes Person Claims Strong Japanese Consumption May Be Helped By Tax Quirk
Speaking from the company corporate headquarters, in Tokyo, Japan, Jacobs & Burns spokes person, Mr NG Nagasaki claimed “Unexpectedly strong Japanese household consumption so far this year may be merely a windfall from a change in the country's tax system that will boost workers' disposable income until the end of May.”
 Print View
April 13, 2007 (FPRC) --
Jacobs & Burns spokes person, Mr NG Nagasaki, then went on to say “If that is the case, consumption will likely lose momentum more than expected in the latter half of this year, slowing overall economic growth.” He continued by saying “In Japan, almost every wage earner has to pay both national income tax as well as local government taxes. But the national and local government tax years start at different times, in January and in June respectively.”
Mr Nagasaki further commented that “From January to May this year, Japanese workers are paying less income tax than normal because of a change in tax allocation between central and local governments. As a part of a drive for decentralization, local governments will have 3.0 trillion yen ($25.3 billion) more a year in their coffers, while the national government is taking that much less.”
He continued by saying “ The reason behind this is because local governments start levying their tax regime in June, the national government, whose fiscal year starts in January, has already started applying its rates which are lower. As a result, Japanese workers are enjoying a lower tax burden during the first five months of this year however
The overall tax burden will increase in June. So it's questionable if the latest firmness in consumption is sustainable"
Various data suggests consumption is firm so far this year, despite earlier expectations that it would slow significantly in reaction to sharp growth in the October-December quarter.The government's unofficial composite index for personal consumption rose 1.1 percent in the first two months of this year, higher than the average 0.9 percent increase in October-December.
Jacobs & Burns provides financial advisory services to wealthy individuals and families, and select endowments, its independent, fee only, conflict free "open architecture" consulting service, a combination of independence, tax awareness and extensive intellectual resources. Jacobs & Burns today is one of the best-recognized open architecture firms advising wealthy families on their investment portfolios and other wealth management issues.
With expertise in the Investment Banking industry, Jacobs & Burns can help you meet the challenges of wealth investment. Jacobs & Burns is a professional financial advisory and venture capital firm with expertise in Investment Banking, Emerging Growth Companies, and Specialized advisory services. Jacobs & Burns provides powerful solutions for growing your wealth in a complex market.
Send an email to Mr NG Nagasaki of Jacobs & Burns
+81-344964857
Keywords:
Jacobs Burns, Jacobs, Burns
|
