Is Japan’s consumption tax hike postponed again? Abe considers delaying it by two and a half years

▲ Japan’s consumption tax hike may be delayed by another two years. (Photo / TV Asahi News)

Travel Center / Comprehensive Report

Is Japan’s consumption tax hike likely to be postponed again? The consumption tax in Japan was originally scheduled to increase in April 2017 from the current 8% to 10%, but Japanese Prime Minister Shinzo Abe recently indicated that he may consider delaying the hike by two and a half years, with the new rate expected to take effect in October 2019.

According to Japanese media reports, Abe is inclined to postpone the consumption tax rate hike and has expressed this stance to Deputy Prime Minister and Finance Minister Taro Aso, as well as Liberal Democratic Party Secretary-General Sadakazu Tanigaki, among others. However, both opposed the delay, arguing that the hike should proceed as originally planned. They also pointed out that further postponement could not only raise trust issues among the public but might also lead to the dissolution of the House of Representatives.

As for whether the hike will definitely go ahead, Abe stated at a press conference following the conclusion of the G7 Summit on the 27th that he would carefully review and discuss the matter before making an official announcement before the upcoming Summer Senate election.