Retail sales tax could curb Japan's economic growth in 2014

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Source: Bloomberg
Japanese PM Yoshihiko Noda may harm country's economic growth by allowing to implement higher sales tax. The drop in consumption is very likely even though tax increase will help to tackle nation's debt burden. The lower house of Japanese parliament yesterday approved a motion to lift sales tax from current 5% to 8% and then to 10%. Analysts warn the tax increase could lead to a growth slump similar to that in 1997.
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