On Tuesday, Japan’s Prime Minister Shinzo Abe officially confirmed that Japan’s government would increase the sales tax from 8% to about 10% next year, in April, as previously scheduled unless the country’s economy is hurt by a great shock.
To shift the country’s world-renowned social security system to the next-gen one and also powers confidence of the international community as well as markets, Japanese government is reluctant to change its mind as for raising this tax.
Abe also added that private consumption in Japan is mostly flat because of global disparity, and consumer confidence seems to be freezing. However, the statesman stood away from direct comments on what extra economic stimulus plans he relishes following surging uncertainty as for domestic as well as world demand.
Previously, it was reported that Abe was considering putting off the tax hike at least by two years in an attempt to win voter support for the upcoming election. The similar tactics was employed in 2014.
Meanwhile, the opposition accused the Prime Minister of utilizing weak data to push back the tax increase schedule.