Bank of Japan Gov. Haruhiko Kuroda said Monday that the impact of a sales tax increase scheduled for April 2017 would be much less than that which resulted from the hike in 2014 ¡ª sending Japan into a recession.
¡°The effect of the sales tax hike will be about a bit more than half of what it was last time,¡± Kuroda said in response to questions from the audience following a speech in Tokyo.
¡°Front-loaded spending and a following drop in demand won¡¯t be as big as the last time¡± because the overall increase is smaller than in 2014 and reduced tax rates will be applied on some items this time, he said.
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