Japanese Stock Up Before 3% Sales Tax Hits
The Japanese, already saddled with the highest living expenses in the developed world, are going to be shelling out even more for most goods and services they purchase starting today.
A controversial and unpopular 3% sales tax, the first of its kind in Japan, takes effect at midnight Friday amid a chain of revolts by local governments and widespread protests by consumers.
Prime Minister Noboru Takeshita, in an unusual move, issued a statement Friday appealing to the public to support the new tax.
“The consumption tax is necessary for the sustained growth of the Japanese economy and for building an affluent society,” Takeshita said. “The government is convinced that the time will come when the new tax will be appreciated by the public.”
Alarmed consumers lined up at supermarkets and retail shops to purchase toilet paper, food, clothing, electric appliances and other daily necessities in advance of the new tax.
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