Japan PM could make final decision on sales tax after G7 summit: LDP lawmaker

[TOKYO] Japanese Prime Minister Shinzo Abe could make a final decision on a sales tax increase planned next year after Group of Seven summit between May 26-27, a ruling party lawmaker and one of the architects of the premier's economic policy said on Wednesday.

Kozo Yamamoto, a Liberal Democratic Party (LDP) lawmaker, said the decision rested with Mr Abe on whether to press ahead with the planned increase in the tax from 8 per cent to 10 per cent in April next year.

There is speculation that Mr Abe could postpone the tax increase due to the stagnant economy, and weak consumer spending that is hampering the government's efforts to jolt the economy out of a long deflationary phase.

Mr Yamamoto and other LDP lawmakers who support the government's so-called "Abenomics" reflationary strategy plan to submit their own economic proposal to the premier next week.

REUTERS