Sales: Tax Increase

sales: This time, sales have been slow ahead of the coming tax increase. ; The sluggish new car sales reflect measures aimed at curbing a surge in demand before the tax increase and a possible subsequent plunge after the hike, including the government's plan to reduce an automobile-related tax by up to 4,500, according to The Japan Times. People are becoming cautious about purchasing new vehicles as they try to confirm the impact of such measures, an auto industry official said. At the time of the previous increase, from 5 percent to the current level, consumers began flocking to car dealers to buy new vehicles more than six months before the move. From September 2013 to March 2014, just before the previous consumption tax hike, monthly sales of new vehicles posted year-on-year growth of over 10 percent, according to an industry group. But no month has seen double-digit growth in new auto sales recently. No auto-related tax breaks were offered at the time and the 3 percentage-point tax hike took place in early spring, when demand generally increases for many goods. (news.financializer.com). As reported in the news.