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The final decision to raise the consumption tax will be taken in October
Japanese Prime Minister Shinzo Abe said the government will take a final decision on the planned increase of the consumption tax in October of this year.
Abe said this at a meeting of the Committee of the Upper House of the Japanese Parliament on Tuesday.
The government is now considering raising the tax from 5% to 8% from April next year.
However, Abe said the government needs to examine in detail the possible negative impact of this increase on the economy.
He said the tax increase would have no meaning if the resulting decline in tax revenues.
Abe noted improvement in the situation with industrial production, unemployment and the level of personal consumption, as evidenced by recent data. However, he said the need of the government to closely monitor the economic performance for the period from April to June.