Consumers and businesses had a mixed response to the Abe government's decision Monday to lift the consumption tax rate to 10 percent next October as planned, with some understanding the need to restore fiscal health and others concerned about the impact on the economy.
Retail and some other sectors voiced wariness about possible confusion at stores, as the government will keep the tax rate on daily necessities such as food and beverages, excluding at restaurants and on alcoholic drinks, at the current 8 percent.
"The tax rise will affect my living, but it can't be helped if it's needed," said a 59-year-old woman in Tokyo. But she said she was worried about how long the lower tax on daily goods will last, as "it may be raised eventually."