The Canadian PressMarch 31, 2014 09:47
TOKYO - Japan raised its sales tax Tuesday, moving to stabilize government finances but at the risk of undermining a shaky economic recovery.
It's a gamble the world's No. 3 economy must take, given its soaring public debt.
Economists expect the sales tax hike, to 8 per cent from 5 per cent, to slow but not derail the recovery. It is the first such increase since 1997, when the combination of the tax hike, an unwinding of debt from Japan's bubble economy days and the impact of a regional financial crisis plunged the country into recession.