Japan government spokesman denies report PM Abe to delay sales tax hike

The Yomiuri newspaper had reported, without citing sources, that the Abe had told his junior coalition partner of the decision on Tuesday, saying a tax hike would make it more difficult to beat Japan's long-running deflation problem.

"No such thing happened as far as I know," Chief Cabinet Secretary Yoshihide Suga told a news conference, repeating

that the premier will decide on the sales tax "appropriately at the appropriate time."

The Yomiuri said Abe was expected to announce the tax hike delay after the current parliamentary session ends on June 1.

The government is scheduled to raise the levy to 10 percent from 8 percent in April next year unless there is a significant financial crisis or a major natural disaster.

After opposing the tax hike, some domestic proponents of the premier's reflationary "Abenomics" program have recently changed their views, urging Abe to implement the tax rise and offset any harm to consumption with a big spending policy.

(Reporting by Kaori Kaneko; Editing by Eric Meijer)