Japan to spend revenue from tax hike on welfare

Tokyo

JAPAN'S government agreed on Tuesday to use revenue from a sales tax increase to boost welfare spending in the coming fiscal year to help citizens in its rapidly ageing society cope with higher costs.

Prime Minister Shinzo Abe's government expects an additional 8 trillion yen (S$90.19 billion) in tax revenue for the next fiscal year after raising the nationwide sales tax to 8 per cent from 5 per cent in April 2014.