Sales Tax (This is What Is Called in US)

choi

Today (Feb 14) Financial Times has a supplement: "Tax; Insights for business leaders," whose cover carries a caveat: "The views and comments in this publication are those of EY Tax Insights Magazine [Issue 20] and are not backed or in any way endorsed by the Financial Times Limited."  EY stands for Ernest Young.

Table of content in the supplement is topped with "Advertising Feature" and marked with "Focus | Indirect taxes."

At page 32 o the supplement is
Point of View[;] Consumption taxes have become part of everyday life[:] Unlike personal income taxes, which command our attention annually, consumption taxes are paid every day. But what is taxed and by how much can differ widely from country to country, depending on the view of the government and tax administration."
http://taxinsights.ey.com/archiv ... -differ-widely.aspx

My comment:
(a) What is surprising to me is that Japan's GDP growth rate in 1980 (its heyday) was just 2.82% (unlike China or Taiwan in their respective heyday).
(b) Japan and Germany (or OECD average) have similar tax rates on income and property and similar rates for "social security contribution." Yet "Taxes on goods and services" (ie, consumption tax) is currently 6.0% i Japan and 10.4% in Germany (OECD average is 11.0%) -- all according to this supplement. No wonders people who have lived in US and then visit Europe says goods there are expensive: gasoline, cigarettes etc.