Japanese Prime Minister Shinzo Abe (Shinzo Abe) ordered his government on Tuesday technological measures to boost the economy , to reduce the national sales tax increase impact .
Data show that economic recovery in the world's third largest active, successful journey right to host the 2020 Olympic Games to ensure inspired , Shinzo Abe, wasted no time in April tax increase Basis .
He told cabinet ministers "Compile strong measures , as a package, including growth strategies, this month , " Economy Minister Akira Amari told reporters .
Timing means will decide on October 1 , when the Prime Minister officially excluded from the tax increase , Tokyo 's first meaningful steps to curb its expansion of public debt - considered a key measure to maintain investor confidence .
Abe gingerly many politicians blamed the last tax increase in 1997 , the state plunged into recession . Economy has improved , clever Abe since he took office in December on a platform of fiscal stimulus and monetary easing measures to promote growth , but the rebound is still fragile.
Nevertheless , it may exceed $ 2 billion U.S. dollars spending plan , measure, including corporate income tax relief shows Abe towards raising taxes - levies doubled to 10 percent , more than two years, the program's first phase.
Strong economic data has been weakened Abe external consultants that Japan should be more decisive shake off deflation , the government increased the sales tax position before .
"In addition to whether the Prime Minister wants , the mood is certainly formed the tax increase is inevitable, said:" A man to senior ruling party official.
Abe does not specify the size of the stimulus , but said it would need a drag on the economy enough to withstand tax increases , Amari said. This means that the program must be a two trillion yen or more , Amari said.
Prime Minister trying to balance his priorities ending 15 years of deflation and needs to get a grip on the Japanese public finances moderate growth right. More than double the annual gross domestic product , Japan's public debt is the largest in the industry .
Tokyo bond market 's long-term interests , no doubt, but policymakers worry about any concerns Japan 's commitment to fiscal reform , will crush sent bond prices and interest rates spike .
Government on Monday sharply raised its second-quarter economic growth estimate of 3.8% per annum , the first three months. The figures include significant improvement , business investment in equipment and software , consider essential for a sustained economic recovery .
, A major supporter of tax increases , Finance Minister Taro Aso (Taro Aso) said that Japan will have no indicators show improvements scheduled to increase sales tax.
A law passed last year , requires the Government to raise the sales tax , similar to other countries in the goods and services tax , in April and 8-10% , in October 2015 . However, the law stipulates that the Government recognized that the economy is strong enough to withstand the blow.
, " Aso said," the law made ??it clear that the tax will rise by three percentage points , followed by two percentage points , so the government ministries will work on this assumption, when they start thinking about steps to raise taxes to offset the damage.
The package is expected to include low-income people to pay the company to increase capital spending to promote housing purchases and long-discussed tax cuts , the process involved in the government source said.
Critics lost power
The timing of tax cuts hardly ever be better.
In addition to the "Abenomics" Growth and Olympic victory , providing a feel- good factor and want more economic activity, Shinzo Abe 's ruling coalition in the July elections to get full control of the legislature until the next public opinion investigation , and has for three years.
Taro Aso , the former Prime Minister of Japan and Bank President Haruhiko Kuroda (Haruhiko Kuroda) has come out strongly taxes. Shinzo Abe , as well as his party's Tax Commission , signed an agreement on the establishment of a group hike , and put their focus , economic measures to blunt the negative impact on economic growth .
Japan 's top business lobby , Nippon Keidanren , also threw its weight behind the tax increases that hit back in business confidence and lead to market volatility.
Nevertheless, Koichi Hamada (Koichi Hamada) and Wyatt Lang Honda's two academic economists credited shaping Abe reflation idea that Japan's recovery is still missing key components , such as wages, business investment and consumer prices continued to growth.



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