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Japan may dip into forex reserves to make good revenue shortfall

Its plan to exempt foods from 2017's VAT hike will mean collecting 600b yen less in taxes

HEMMED IN: The 2014 VAT hike put Japan in a slump, but Mr Abe has already committed his government to another hike in 2017.


THE Japanese government may be forced to tap into the nation's foreign-exchange reserves of more than US$1 trillion, in order to keep its promise to the international community that its national consumption tax would be raised next year on schedule, say news reports.