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But
the document 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.
Prime Minister Shinzo Abe told lawmakers he planned to go ahead
with implementing the sales tax as scheduled, but he sidestepped
questions on whether he could change his mind after hosting a
Group of Seven summit.
"There is no change to intention to raise the sales tax unless
there is a Lehman Brothers-type crisis or a natural disaster,"
Abe said.
"But I need to consult experts' opinions on whether we are in
such a scenario."
Japan's economy expanded faster than expected in the first
quarter, data showed on Wednesday, avoiding recession. But
economists say 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.
Damage from an earthquake last month in the southern
manufacturing hub of Kumamoto could also give the government
reason to delay the tax hike before upper house elections in
July, some economists say.
Abe's government is set to finalize its growth strategy before
the end of this month, 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 draft also called for a study on issuing shopping vouchers
to households, a policy used by previous governments to try to
prop up consumption.
In a separate policy statement to be finalised at the end of
May, the government will unveil an additional set of growth
plans, including an accelerated effort to forge free trade
agreements, a draft obtained by Reuters showed.
The draft also said, rehashing similar growth plans in the past,
the government would set up a council to promote the "Internet
of Things", in which industrial and consumer firms and software
providers team up to offer smarter ways of doing things such as
predicting mechanical problems before they arise.
The government is scheduled to raise the sales tax to 10 percent
from 8 percent next April.
Japan will host a Group of Seven finance ministers and central
bankers summit from Friday.
(Additional reporting by Kiyoshi Takenaka; Editing by Chris
Gallagher and Nick Macfie)
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