Several news outlets report today that Prime Minister Shinzo Abe has solidified his decision to proceed with plans to increase the consumption tax rate to 8 percent in April. It had been widely reported that a 5 trillion yen stimulus package was being considered by the government to soften the blow to the economy that the tax hike was expected to pose. Additionally, Abe and Finance Minister Aso Taro are carefully considering a corporate tax cut that would be implemented in two stages. The first stage would involve ending the special reconstruction tax related to the March 2011 disaster a year early, while the second stage, would involve lowering the corporate tax rate that would place Japan on par with other countries.

Abe will formally announce his decision regarding the consumption tax on October 1.