Prime Minister Shinzo Abe is keeping quiet about whether to he will raise the consumption tax in October 2015 as scheduled, saying only that he will make a final decision while "comprehensively" analyzing the economic situation.
Hiking the tax to 10 percent next year "would play a role" in sustaining the social security system, Abe told a news conference Wednesday after naming a raft of new Liberal Democratic Party executives and Cabinet members.
But Abe indicated that the second round of the two-stage tax hike — aimed at covering rising social security costs — might be put off if the April increase to 8 percent from 5 percent continues to drag down the economy.