TOKYO, May 18: The Japanese government’s annual economic growth strategy calls for measures to boost consumption on the assumption it will go ahead with a sales tax hike scheduled for next year, a draft obtained by Reuters showed on Wednesday. The document, however, may do little to temper speculation that the government will delay the tax increase scheduled for April 2017 amid lingering concern that consumer spending is struggling due to low wages for part-time workers. Japan’s top government spokesman and economics minister have repeatedly denied a report in the Nikkei newspaper over the weekend that a delay in the tax hike is a done deal. Economists say Japan’s patchy growth and worries about a global slowdown could eventually force the government to reverse its official position and avoid placing an extra burden on households. Prime Minister Shinzo Abe’s government is set to compile its growth strategy later on Wednesday, which will feature previously announced policies such as an increase in the minimum wage, better pay for day care workers and steps to narrow the pay gap between regular and part-time employees. The government is scheduled to raise the sales tax to 10 percent from 8 percent next April. The planned increase has already been delayed once after an increase to 8 percent from 5 percent in April 2014 hit consumption and knocked the economy into recession. Japan will host a Group of Seven finance ministers and central bankers summit from Friday. Abe has said he wants to use the meeting as a platform to promote more expansive fiscal policy, which economists say makes a sales tax delay more likely. (AGENCIES)
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