Japan PM to Delay Sales Tax Hike Until 2019

Japan’s Prime Minister Shinzo Abe is eager to rescue Abenomics.

Japan’s Finance Minister Taro Aso told Parliament over the weekend that Abe will propose delaying the sales tax hike, from 8% to 10%, for a second time until October 2019. In addition, Abe plans to propose a stimulus package in a special legislative session after the July upper house election. The government will seek a supplementary budget worth 5 to 10 trillion yen ($45 to $90 billion), the Nikkei reported.

But Abe’s moves are not without consequences.

Finance Minister Aso warned that the second delay may trigger a general election to “put the plan to the public.” Abe already called a snap election in late 2014, which Japanese voters found pointless. Japanese media Kyodo News reported that Abe doesn’t plan to call snap elections on the same day as the Upper House’s July vote.

via Barrons

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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