Japan's Abe Sees Limited Tax Hike Impact

London, May 1 (Jiji Press)--Last month's consumption tax increase appears to have only a limited impact on Japan's economy, Prime Minister Shinzo Abe said Thursday in a speech delivered at London's City financial district. "While of course we still need to exercise caution regarding the risk of Japan's increased consumption tax rate dampening consumption, it appears that consumption has not been diminished to the extent we had feared," Abe said. Japan raised the tax to 8 pct from 5 pct on April 1 to finance increased welfare costs. "We seek to reinstate fiscal soundness simultaneously with our tireless quest for growth," Abe said. "Abenomics is now moving forward," he added, referring to his economic policy package. "What is important is exposing ourselves to competition and building up the indefatigable backbone to overcome bitter winds," he said. "That is what I see as essential in order to put Japan back on a growth track over the long term." Seeking investment in Japan, Abe said that "we are going to improve our corporate taxation still further." He said his government is promoting reforms of the Government Pension Investment Fund, showing a positive stance in diversifying the investment portfolio of the world's largest pension fund. Abe said that he and U.S. President Barack Obama recently reaffirmed that the two countries would "give traction" to the wholes process of a Trans-Pacific Partnership free trade initiative so that an agreement should be reached sooner rather later. "Our meeting last month was a great success in that sense," Abe said. In a joint statement issued to sum up the Abe-Obama meeting in Tokyo, Japan and the United States said that "we have identified a path forward on important bilateral TPP issues." On talks between Japan and the European Union on an economic partnership agreement, Abe said, "I hope you join me in setting a target of concluding negotiations...within 2015." Abe said Japan will restart nuclear plants that meet the country's strict safety standards, which are "at a level fully on par with anywhere else in the world." "I decided to restart our nuclear plants...one by one, undertaking procedures with great care," he said. No nuclear reactor is in operation in Japan due to safety concerns following the March 2011 accident at Tokyo Electric Power Co.'s <9501> Fukushima No. 1 nuclear plant. END