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Japanese Prime Minister Shinzo Abe has delayed the consumption tax hike to 10% twice, but now he appears determined to follow through. (© Nikkei montage)
Asia Insight

Japan's sales tax: Looming increase sparks recession fears

Businesses seek workarounds as Abe vows to avoid another downturn

RURIKA IMAHASHI and ERI SUGIURA, Nikkei staff writers | Japan

TOKYO -- Japan's fast-approaching consumption tax increase, to 10% from 8% in October, is bringing back some painful memories.

The creation of the tax and subsequent increases have doomed prime ministers and severely dented the economy in the past. So consumers, businesses and the government are scurrying to prepare for the twice-delayed move, all the while wondering whether this time will be different.

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