Japan will delay its planned sales tax hike for a second time, Japan's Prime Minister Shinzo Abe announced Wednesday, while also detailing a new stimulus package for the economy this fall.
The decision to delay the tax increase by two and a half years was formally announced at a press conference Wednesday, although many analysts have long considered it to be a done deal.
The hike, originally planned for October, has already been delayed once and Abe may be moving for another postponement due to anemic economic growth and essentially non-existent inflation. Previously, Abe has said he would delay the 2017 sales tax hike only if there's a large natural disaster or a 2008-style crisis.
The delay means the law is now not due to come into force until October 2019 and Abe said Wednesday that he will seek a public mandate for the sales tax delay in the upper house of the Japanese parliament, according to Dow Jones.