Skip to content
Subscriber Only

Japan Companies Say Recovery to Survive Higher Tax, Poll Shows

More than 80 percent of large Japanese companies expect the nation’s economic recovery to survive Prime Minister Shinzo Abe’s planned sales tax increase in April, according to a survey by the Mainichi newspaper.

The economy will return to a recovery path in the second half of the year after slumping when the sales tax increases in April, said 95 companies, or 77 percent of respondents. A further 6.5 percent don’t expect the economy to falter as Abe’s government will offset the impact with increased spending, the newspaper reported. Only 3.2 percent of firms responding expect the economic recovery to stall as the tax jumps to 8 percent from 5 percent.