Japan's Abe: Will carefully watch the impact of sales tax hike

Japanese government will carefully watch the impact of sales tax hike on the economy and take steps as necessary, Japan's Prime Minister Shinzo Abe said on Tuesday. 

The consumption or sales tax is scheduled to increase to 10% this month from the current 8%. 

Many observers are worried that consumers may tighten their purse strings following the sales tax hike, leading to a deeper economic slowdown.