DJ: Govt To Set Up Panel To Study Economy Ahead Of Sales-Tax Decision

TOKYO--The Japanese government is setting up a panel to examine economic conditions ahead of a decision to give input to Prime Minister Shinzo Abe on whether to raise the sales tax this autumn.

"We will listen widely to experts in the field and organizations on how to better implement sales tax hikes than in the past," Economy Minister Akira Amari said at a news conference.

The panel will include Mr. Amari, Finance Minister Taro Aso and Bank of Japan Gov. Haruhiko Kuroda, in addition to four members from the government's Council on Economic and Fiscal Policy. It will meet several times in late August, inviting experts and others to participate.

Japan is scheduled to raise the current 5% sales tax to 8% in April 2014 and to 10% in October 2015. The decision on the final plan rests with Mr. Abe, who will take into account various economic factors, such as revised gross domestic product data for the April-June quarter due in September.

The government introduced the tax at 3% in 1989 and raised it to 5% in 1997.