Households in Japan will face more financial burdens from Wednesday, the start of the new fiscal year, due to changes in car taxation rules, reduced pension payments and price hikes on food and other items.

While major companies have decided to raise their pay scales during this year's spring wage talks, elderly people and low-income earners, who will not benefit from the move, may likely keep tight hold of their purse strings.

The world's third-largest economy is believed to be recovering, but consumer spending remains sluggish in the aftermath of the consumption tax hike from 5 percent to 8 percent last April.