The consumption tax is going up to 8 percent next Tuesday, but consumers also have to brace for a another hike in October 2015, when the Abe administration plans to raise it all the way to 10 percent — double what it has been since 1997.
While the thought of having to tack another 10 percent onto every purchase is daunting, the government is considering providing some relief in the form of a reduced levy on daily necessities, particularly food, to mitigate the impact on low-income households.
While this measure is being weighed only for the second hike, in 2015, the ruling coalition is already gearing up for negotiations on which items should qualify for a lower rate and how much the reduction should be.
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