Abe Orders Japan’s First Sales-Tax Increase Since ’97: Economy

Japanese Prime Minister Shinzo Abe proceeded with an April sales-tax increase and a 5 trillion yen ($51 billion) stimulus plan as he tries to rein in the world’s biggest debt burden without negating efforts to end deflation.

The levy will rise to 8 percent from 5 percent now, Abe, 59, said in Tokyo today, the first increase since 1997. To cushion the blow, he unveiled a package to be compiled in early December, which a Cabinet Office statement showed includes public works spending and tax breaks encouraging companies to boost capital spending and wages.