Japan PM Abe To Postpone Planned Sales Tax Hike: Report

(RTTNews) - Japanese Prime Minister Shinzo Abe is set to postpone a consumption tax hike scheduled for next April over fears that it would derail efforts to boost prices, the Nikkei business daily reported Saturday.

Abe is likely to deliberate more on the matter and announce the decision only after the Group of Seven leaders' summit to be held in Japan later this month, the report said.

It remains unclear as to the how long Abe wants the tax hike to be delayed. However, Abe has communicated his decision to senior officials and is widely expected announce the move on June 1, when he will hold a news conference after the close of the parliamentary session, the report said.

It will be the second time that the proposed sales tax hike is postponed. The 8 percent sales tax rate was originally scheduled to be hiked to 10 percent last October.

Previously, the rate was boosted by three percentage points in April 2014, which was the first such hike in 17 years.

The economic impact of the earthquake that struck the country in April and a strengthening yen hurting exports could be the possible reasons behind the move to delay the tax hike.