Business / Economy

Japanese government pledges to take 'every measure possible' to ease impact of consumption tax hike


The government pledged Friday to take full measures to alleviate the impact of a planned consumption tax hike in October next year, in a basic policy for its budget compilation work for fiscal 2019.

The basic policy, adopted at a Cabinet meeting, said the government will take “every measure possible” in budget formulation work for the coming two years to mitigate rapid fluctuations in consumption before and after the tax hike, from 8 percent to 10 percent, due partly to expected last-minute demand.

The basic policy also said the government will take intensive disaster preparation and response measures for key infrastructure over three years, including under a second supplementary budget for fiscal 2018, after a series of natural disasters this summer.

Following the adoption of the policy, the government and ruling bloc will accelerate final arrangements to draw up a draft for the fiscal 2019 initial budget at year-end.