Japan Approves Tax Reforms; Retail Sales Fall

Darlington Musarurwa
23 Dec, 2009
New York City

Japan approves 2010 tax reforms. The direct tax collection is expected to decline but total tax revenues is expected to rise by one trillion yen. Japan supermarket sales fall 8% to 1.03 trillion in November and retail sales at stores are expected to drop to 13 trillion yen, the sharpest decline in 21 years.

[R]5:00 AM New York, 7:00PM Tokyo - Japan approves 2010 tax reforms. Japan supermarket sales fall 8% to 1.03 trillion in November and retail sales at stores are expected to drop to 13 trillion yen, the sharpest decline in 21 years.][/R]

Financial markets in Japan are closed today for a holiday.

Japan Approves 2010 Tax Reforms

Nikkei News reported today that Japan’s cabinet has approved an outline of the 2010 tax reforms scheduled to be implemented from the next fiscal year in April 1, 2010.

According to the report, the reforms will cut direct receipts by about 10 billion yen in fiscal 2010 but result in a total tax increase of 1 trillion yen.

Prime Minister Yukio Hatoyama however had to forgo his pledge to repeal current provisional surcharges on gasoline and automobile-related taxes.

Under the new provisions, the Tax Commission has raised the tobacco tax to 3.5 yen per cigarette effective October 1, with revenues expected to rise to 160 billion yen.

TSE to Protect Shareholders in Rights Issues

Separately, the online edition reported today that Tokyo Stock Exchange President Atsushi Saito said the bourse plans to modify its regulations by the end of the year so that companies can “freely set the amount of money they raise through the issue of new equity warrants at no cost to shareholders.”

The move is expected to prevent the dilution of per-share earnings.

In 2009, stocks fell as companies raised more than 5 trillion in capital to ward off global financial crisis.

Japan Supermarket Sales Fall 8% in November

Kyodo News reported that Japan Chain Stores Association today said supermarket sales dropped 8% to 1.03 trillion yen in November at 8,185 outlets run by 68 companies.

Sales in the January to November period were 11.59 trillion yen.

The Association forecasts sales to drop below 13 trillion this year, the largest decline in 21 years.