Rail and bus operators will raise fares for cash and smart-card users to reflect the 3-point consumption tax hike set for April 1, but they are split over how much to raise the fares.

The government will allow the operators to raise fares in increments of ¥1 for users of smart cards, but this is not feasible for cash charges. For those who pay in cash, fares will be raised in ¥10 increments. Land, Infrastructure, Transport and Tourism Minister Akihiro Ota said Tuesday that a "double fare" structure should be approved to correctly reflect the tax hike.

The decision means that after the sales tax is raised to 8 percent from the current 5 percent, smart-card users may be charged ¥154 for fares currently set at ¥150, while passengers paying in cash may be charged ¥160.