Japan confirms hike in sales tax to 8%, stimulus package

As widely expected, Japan will go through with a plan to raise sales tax in April to 8% from 5%, a move that is set to raise ¥8T. To offset the economic impact of the hike, Prime Minister Shinzo Abe has unveiled a ¥5T ($51B) stimulus package that will include spending on public works and tax breaks to encourage companies to boost capital expenditures and wages. Still, the VAT rise is Japan's first serious attempt in 15 years to rein in its massive public debt.