Japan will delay sales tax hike by 1-3 years
Shinzo Abe, Japan’s Prime Minister is going to postpone a sales tax lift scheduled for next year, for about three years, according to government sources. The given move is going to justify G7 efforts to avert another global financial downtime.
While the tax lift was observed as critical to reining in Japanese massive public debt, the prime minister as well as his aides have already given signals that there’s a chance of deferring it because Japanese economy skirts another downtime, while a deflation threat re-emerges ahead of the upper house elections scheduled on summer.
Japan’s government has already reached a global agreement to cooperate in order to avert another huge recession. As G7 chair, Japan is going to initiate such moves in order to contribute to the world economy by means of all policy tools.
Abe stressed that Japan’s government requires reigniting the engine of Abenomics. It would undoubtedly include a decision on the sales tax lift. That’s an obvious hint that next year’s tax lift is going to be delayed.