Japan PM Abe orders study of impact of sales tax alternatives: Sources
TOKYO (REUTERS) - Japanese Prime Minister Shinzo Abe has ordered a study of the economic impact of various alternatives for implementing a planned sales tax increase, including a plan for more gradual 1 percent annual rises, government sources familiar with the situation said over the weekend.
The intent of the study, the sources said, is not to promote the adoption of an alternative to the existing sales tax plan, which Finance Minister Taro Aso has said will be implemented as is.
Rather, the aim is to guide the government in deciding how best to cope with the impact of the tax increase, including adopting a supplementary budget, as it tries to balance its countervailing goals of reining in a bloated public debt while pulling the economy from its decades-long deflation.
Mr Abe has said he will decide this autumn how to proceed with the sales tax increase.