Japan’s Abe Orders Government to Prepare for a Sales Tax Hike

Japanese Prime Minister Shinzo Abe ordered his government on Tuesday to craft measures to bolster the economy to cushion the impact of an increase in the national sales tax.

Buoyed by data showing the world’s third-biggest economy recovering briskly and a successful trip to secure the rights to host the 2020 Olympic Games, Abe wasted no time in preparing the groundwork for the April tax increase.

He told cabinet ministers to “compile strong measures as a package, including growth strategies, by the end of this month,” Economy Minister Akira Amari told reporters.

The timing means the measures will be decided by October 1, when the premier is to formally rule on the tax increase, Tokyo’s first meaningful step to contain its ballooning public debt – considered key to maintaining investor confidence.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza