Japanese firms want tax hike to proceed but urge more stimulus - Reuters poll

According to a Reuters monthly poll, a majority of the Japanese companies want the Japanese authorities to go ahead with the October sales tax hike, but at the same time, call on the government to boost stimulus measures in effort to soften the blow on the economy.

Key Findings:

“About 80 percent of companies surveyed say authorities should go ahead with the hike, the poll showed.

Some 18 percent said no extra stimulus was needed, but 61 percent said additional steps are necessary.

Just 21 percent said the planned tax increase should be scrapped altogether, according to the April 3-15 survey.

Some respondents said boosting government spending defeats the point of the tax hike.

Others expressed concern that the tax hike would undermine Japan’s economic growth, which is already weak.

The Reuters Corporate Survey, conducted monthly for Reuters by Nikkei Research, polled 478 large and mid-sized firms with managers responding on condition of anonymity. About 230 firms answered the questions on the sales tax issue.”