The Japanese Consumption Tax Experience: Lessons for Australia?
(2002) 5(2) Journal of Australian Taxation
22 Pages Posted: 10 Dec 2015
Date Written: 2002
Abstract
Great controversy has raged in Australia over the impact of the GST at both the macro and microeconomic levels. In particular it has been argued that the tax imposes unacceptably high compliance costs on small businesses.
Japan is said to be a country of small shopkeepers and so, not surprisingly, a similar controversy brewed when the VAT was first mooted for that country. To quell these concerns the Japanese consumption tax contains special features to minimize the impact on small business.
This article explores whether there any lessons for Australia from the Japanese experience.
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