In historic step,Japan PM hikes tax

Japan’s Prime Minister Shinzo Abe took a step on Tuesday that none of his predecessors had managed in more than 15 years — making a dent in the government’s runaway debt.

Abe,whose economic policies have begun to stir the world’s third-biggest economy out of years of lethargy,said the government will raise the national sales tax to 8 per cent in April from 5 per cent.

But at the same time he will soften the blow to the nascent recovery. As the tax increase is set to raise an additional 8 trillion yen a year,Abe will also announce a stimulus package worth 5 trillion yen.