The Japanese Government Will Implement The New Consumption Tax System Since October 2019.

The Japanese government will introduce a new consumption tax system since October (2019). Because personal consumption and equipment investment are the mainstay of Japan's economic domestic demand, and as an important indicator of the growth of the market economy, experts recognize that the new consumption tax system implemented in Japan since October 1st will reduce consumers' purchase intention. "Tax increases will lead to a sharp decline in personal consumption, which will affect the poor economy in the second half of 2019," according to Nan Wu Chi, a comprehensive research institute of agriculture and forestry in Japan.

Japan implemented the measures to increase consumption tax in April 2014. Before the tax increase, people and enterprises increased their purchases of goods and services. However, after the implementation of the tax increase, the personal consumption intention declined sharply in April 2014 ~6, showing a negative growth phenomenon, and gradually increased steadily in 7-9 months.

In July 2019, the number of employees employed in Japan's manufacturing industry decreased, compared with the same period last year, and the Department showed a downward trend for 6 consecutive months. This shows that the poor business has begun to affect the employment opportunities of enterprises, while the export export stagnation has oppressed the growth of Japanese domestic enterprises. Under the double pressure of investment in equipment and rent increase, the implementation of tax increases in October will further lead to the stagnation of the Japanese economy.