Prime Minister Shinzo Abe announced Tuesday he will raise the unpopular consumption tax from 5 to 8 percent on April 1 as scheduled, breaking a powerful political taboo.

At the same time, Abe unveiled a ¥5 trillion stimulus package to offset some of the immediate negative effects of the tax hike, including a ¥10,000 cash allowance for low earners and various tax cuts totaling about ¥1 trillion, including temporary ones, as well as ¥730 billion in tax incentives to encourage corporate investment.

The tax rise is expected to increase government revenues by ¥5.1 trillion in the next fiscal year, according to media reports.