Individuals who are involved in precious metals investing might benefit from knowing that Japan is considering boosting its sales tax to 8 percent from its current level of 5 percent.
In the event that this increase happens, purchases of gold made by the nation’s consumers could spike, Bloomberg reported. A surge in demand for the commodity happened when the sales tax was hiked by Japan in 1997 to 5 percent from 3 percent. Data provided by the World Gold Council revealed that during the first quarter of that year, the nation’s investors bought 24 tons of the commodity, compared to 9 tons during the prior quarter.
The final decision must be made by Japanese Prime Minister Shinzo Abe, and in the event that the proposed hike is approved, the tax on gold will rise to 8 percent in April and then 10 percent in October 2015, according to the news source.
Japan is not the only nation whose gold demand could easily be impacted by the actions of the government. India announced recently that its import duty is being hiked. This move could also have a substantial impact on the demand for gold and precious metals investing.