Society

Government to raise consumption tax as planned

Jun 06 (NHK) - NHK has learned Japan's government will go ahead with a planned increase in the consumption tax in October.

The commitment will be included in a draft of its economic and fiscal policies for the year.

The government will also introduce economic stimulus measures as needed. Some economists have warned the tax hike could slow the economy.

Japan plans to raise the consumption tax to 10 percent from 8 percent to revive its fiscal health and fund the social security system.

The government will also prepare policies to tackle demand fluctuations prior to and after the tax hike.

This includes keeping the 8% rate on some daily necessities, such as food.

According to the draft, Tokyo will ready measures to deal with any downturn from the trade conflict between the US and China.

The government plans to get Cabinet approval for the polices later this month.

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