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Japan PM Abe: will proceed with sales tax hike as planned

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Japan PM Abe: will proceed with sales tax hike as planned
FILE PHOTO: Japan's Prime Minister Shinzo Abe speaks at a news conference in Tokyo, Japan, July 20, 2018. REUTERS/Kim Kyung-Hoon   -   Copyright  Kim Kyung Hoon(Reuters)
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TOKYO (Reuters) – Japanese Prime Minister Shinzo Abe said on Monday that he would proceed with a planned sales tax hike in October 2019 and carry out fiscal reform, while taking steps to cushion the economic impact of the higher levy.

“We will carry out fiscal consolidation and want to raise the sales tax as planned” to 10 percent, Abe told a news conference held to kick off campaign for a leadership race for the ruling Liberal Democratic Party.

He said he has learned a lesson from the impact of the 2014 sales tax hike, which dealt a blow to private consumption, citing the need to stimulate consumption of durable goods such as cars and housing.

(Reporting by Tetsushi Kajimoto; Editing by Kim Coghill)

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