Only 26 Pct of Japan Firms Expect to Benefit from Tax Cut

Tokyo, Feb. 17 (Jiji Press)–Only 25.7 pct of Japanese companies expect a positive impact from a possible consumption tax cut, according to a survey by research firm Teikoku Databank Ltd. Meanwhile, 48.2 pct said that they anticipate no particular impact, apparently because a lower tax rate would likely apply only to food products. Also in the survey, 9.3 pct said that the negative effects would outweigh the positive ones, and 16.8 pct said they do not know. The survey was conducted online over five days through Feb. 9. Valid responses came from 1,546 companies. Retailers appear to believe that a tax cut would stimulate consumption. Still, the proportion of those expecting a positive impact was limited to 36.8 pct. Restaurant operators voiced concerns about a possible decline in sales as their industry is not expected to benefit from the possible tax cut. “Many businesses are concerned about the procedural burden,” a Teikoku Databank official said, indicating the need to clarify the details of a tax cut. END [Copyright The Jiji Press, Ltd.]