Japan's Abe to postpone tax hike, call December election: media
[TOKYO] Japanese Prime Minister Shinzo Abe plans to postpone a planned tax increase and call a general election for December, the Sankei newspaper said on Wednesday.
Abe will delay the increase in the national sales tax by a year and a half to April 2017 as third-quarter GDP is likely to be weak and then take the issue to voters because the delay will exceed the current term of the Lower House of Parliament, the conservative daily said, citing unnamed government and coalition officials.
A government official close to the prime minister's office told Reuters on Tuesday that Abe was likely to delay the tax hike, while major political parties began gearing up for a possible election.
Abe raised the tax to 8 per cent from 5 per cent in April, sparking Japan's biggest economic contraction since the global financial crisis in the second quarter. He has said he will decide on whether to proceed with the planned October 2015 increase to 10 percent after seeing third-quarter GDP.
Preliminary GDP numbers are due on Monday.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
H5N1 strain of bird flu found in milk: WHO
China moves to boost foreign investment in domestic tech companies
Xi orders China’s biggest military reorganisation since 2015
Warner Bros CEO earned US$49.7 million in strike-impacted year
Teheran signals no retaliation against Israel after drones attack Iran
India central bank cannot let its inflation guard down just yet, MPC minutes show