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Homechevron_rightWorldchevron_rightJapan PM to dissolve...

Japan PM to dissolve lower house, delays sales tax hike

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Japan PM to dissolve lower house, delays sales tax hike
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Tokyo: Japanese Prime Minister Shinzo Abe Tuesday said he will dissolve the lower house of the Diet Nov 21 and postpone the second round of sales tax hike by 18 months in the wake of the country's severe economic situation.

The consumption tax hike was planned to be carried out in October 2015 and the prime minister said the tax hike would not be delayed again.

Abe told a press conference that Japan's economy was yet to return to the path of recovery and the first round of sales tax hike had an adverse impact on economic growth, Xinhua reported.

Japan will chalk out an extra budget in the current fiscal year to boost consumption, he added.

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