Abe puts off tax hike, calls snap vote

By Associated Press in Tokyo ( China Daily ) Updated: 2014-11-19 08:13:12

Japan's Prime Minister Shinzo Abe called a snap election for December and put off a sales tax hike planned for next year, vowing on Tuesday to step down if his strategy to revive the ailing economy falls flat.

Despite Abe's aggressive revival policies to end two decades of stagnation, the Japanese economy slipped into a recession last quarter after a tax increase in April crushed consumer and business spending. That prompted Abe and other officials to reconsider a second hike planned for October next year.

"I've been pondering this problem," Abe told a news conference. "Even if we raise the tax as planned, tax revenue will not increase if the economy does not recover."

Abe puts off tax hike, calls snap vote

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