Time to pay taxes Japan

Finally, Japan is rising its consumption tax. Boy what a battle.

http://www.bloomberg.com/news/2012-06-26/japan-lower-house-passes-sales-tax-bill-as-noda-faces-dpj-split.html


Headlines here in Germany were hilarious. Like, Japan rising VAT by 100% and burying the real flabbergasting truth somewhere in the article. The truth is, that this tax in Japan is coming from a ridicolously low base of 5% (that's even lower than in Switzerland!) and going to 10% in 3 years. That what I call a wet dream for german consumers (paying 19%).

Till 1989 Japan didn't have any VAT at all. It was introduced in January 1989 with a rate of 3%. In 1997 it rose to 5%. And now, after can't remember how many years of battling and don't know how many prime ministers ousted over this (non) issue, Mr.Noda finally pushed it through.

But japanse consumers are not the only ones starting to feel the" pinch" of the tax office, also corporate Japan (at least domestic corporations) is on board.

Hasn't Japan allegedly been "on and off" in recession for the last 4 years?

Looks like a recession any finance minister in the world would give its right arm for.