Now or Never for Japan to Raise Taxes: Takeshita

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April 1 (Bloomberg) -- Seijiro Takeshita, director at Mizuho International, discusses the potential economic impact of a rise in Japan’s sales tax from 5 percent to 8 percent on Bloomberg Television’s “The Pulse.”

A car or high-priced goods will factor.

These kinds of issues will deftly falloff.

By july or september, it will even out.

Our employment situation is coming back.

Wages on exports are coming back.

There is a feel-good factor that is starting to rise.

If we do realize these two things at the same time, we will have a good issue coming up.

Does this push the wage hike story further?

The effect is y¢25 trillion.

The fact of the matter is it is easily done to show that we are trying to include discipline into our system.

That is one thing.

It is only a percent.

It is 20% here.

The ratio of senior citizens is the same at 10%. in the past 15 years, we could not raise consumption tax.

It is really now or never.

I am curious.

If i have to pay another two percent, do i asked my boss for another two percent?

We stick to lifelong employment and seniority.

We have to see base wages rise.

We have to see this simmer down to the pyramid.

The large company is doing well.

We have to see these domestic sides follow these large exporters for the second half of the year.

This is what you just said.

It is a little less rosy going forward.

It is the forward picture i am interested in.

We get to the difficult bits and things increase, the cap tatian will go to 10%? do you think that will happen?

We are a long way away.

It depends on what july, september gdp figures are.

They will probably make a decision around november.

Again, my argument is most likely.

Japanese spending patterns are not on a cash income.

It is more to do with stability than employment.

You are getting that.

The jobless rate is at a seven-year low.

You are seeing much better conditions.

This gives much better feel-good factor.

If we can wage increase, consumption will be fairly stable.

It is working?

So far so good.

I think the market is asking for too much too soon.

Of course it is not going to work right away.

It does not happen overnight.

It is a big economy.

There is a lot of rigidity in the system.

That is not going to be easy and it will take a lot longer.

Thank you very much for joining us.

We're going to take a break.

We will be back ? ? in a couple

This text has been automatically generated. It may not be 100% accurate.


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