Japan PM Abe: Will proceed with sales tax hike as planned

Japanese Prime Minister Shinzo Abe said he has learned a lesson from the impact of the 2014 sales tax hike, which dealt a blow to private consumption.
Japanese Prime Minister Shinzo Abe said he has learned a lesson from the impact of the 2014 sales tax hike, which dealt a blow to private consumption.PHOTO: REUTERS

TOKYO (REUTERS) - Japanese Prime Minister Shinzo Abe said on Monday (Sept 10) that he would proceed with a planned sales tax hike in October 2019 and carry out fiscal reform, while taking steps to cushion the economic impact of the higher levy.

"We will carry out fiscal consolidation and want to raise the sales tax as planned" to 10 per cent, Mr Abe told a news conference held to kick off his campaign for a leadership race for the ruling Liberal Democratic Party.

He said he has learnt a lesson from the impact of the 2014 sales tax hike, which dealt a blow to private consumption, citing the need to stimulate consumption of durable goods such as cars and housing.