An Overview of Japan’s Tax Reform since the 1980’s

The current Japan’s tax system was formed in the period of economic reform after the second world war and has played a positive function in the recovery and development of the country’s economy. However, since the 1980s, the Japanese tax system has been found to be progressively unable to meet the needs arising in the new age. Following the change in the economic and social situations, in order to improve its finance and revitalize its economy, Japan has carried out a series of tax reforms starting with the introduction of the consumption tax at the end of the 1980s. Since the year of 2000, the Koizumi Government has attached greater expectations to tax reform, hoping that the country’s economic slump could be dealt with through appropriate tax adjustment. Faced with such problems as financial difficulties and limited policy measures that can be taken, tax policy may prove to be the only effective countermeasure for the current prosperity problems.