TOKYO -- Japanese Prime Minister Shinzo Abe will announce next week that the government will postpone the sales tax hike slated for April 2017, The Nikkei learned on Friday.

At the Ise-Shima Group of Seven summit held in Mie Prefecture in western Japan, leaders reaffirmed the need to avert another world economic crisis by reinforcing their efforts to take all appropriate policy responses, including fiscal measures. Abe will likely cite the agreement as a reason to delay the scheduled increase of the country's consumption tax to 10% from the current 8%.

The government will begin discussions on the postponement, with the likely new date set for April 2019.

The rate hike was originally slated for October 2015, but it was put off until April 2017 because Abe was concerned about its impact on consumption.

(Nikkei)