Prime Minister Shinzo Abe has decided to forgo the consumption tax hike planned for next April, sources close to Abe said Friday.

The decision comes as the Japanese economy is experiencing sluggish growth due to tepid domestic private consumption and the slowdown in emerging economies, especially China. Consumer spending in Japan plunged following the previous sales tax hike in April 2014.

The tax hike could be delayed by around two years or possibly about 18 months until the autumn of 2018, when Abe's stint as president of the ruling Liberal Democratic Party expires, the sources said.