TOKYO: Japanese Prime Minister Shinzo Abe has said the government may further delay another sales tax increase if an unexpected event such as another global financial crisis or a huge earthquake occurs.
Abe, speaking to parliament, said a sales tax hike to 8 percent from 5 percent last April weighed on people’s minds. “Consumer sentiment was surely dampened,” Abe said. The government had initially planned a second tax increase for October this year, but recently postponed it to April 2017 due to the weak economy. Data earlier on Friday showed the nation’s households cut spending more than expected and retail sales fell for the first time in seven months in January as the impact of the April tax hike lingered.
