Japanese Prime Minister Shinzo Abe says he hopes to implement a long-delayed consumption tax increase as planned, unless a financial crisis occurs on the scale of the Lehman Brothers collapse in 2008.
Japan is scheduled to raise its consumption tax to 10 percent from the current 8 percent in October of 2019. Abe decided last year to postpone the hike, initially scheduled for April of this year.
Abe noted in a television interview on Tuesday that Japan’s nominal gross domestic product grew by 3 percent in this year’s April-to-June quarter. He said consumption is also gradually recovering.
The prime minister also said he believes current circumstances can produce favorable economic conditions for a consumption tax hike in 2019.
Abe said the government needs the additional tax revenue to implement its policies.
Source: NHK Image: Bank Image