Abe: Govt. Will Fully Prepare For Tax Hike

Abe: Govt. will fully prepare for tax hike

Prime Minister Shinzo Abe says the government will be fully prepared for the upcoming consumption tax increase so as not to have a repeat of the decline in spending that followed the previous tax hike 4 years ago.

Abe made it clear on Monday that Japan's consumption tax will go up from the current 8 percent to 10 percent as planned in October 2019.

Speaking to reporters at the prime minister's office on Tuesday, Abe noted the government learned a lesson in 2014 when people refrained from purchases after the consumption tax was raised from 5 percent to 8 percent.

He stressed the government will request funding for the fiscal 2019 and fiscal 2020 budget plan to implement measures to keep people spending.