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Japan to compile $50 billion stimulus package to offset impact of sale tax hike

TOKYO (Reuters) - Japan decided to compile an economic stimulus package worth around 5 trillion yen ($50.96 billion) to offset the impact from a sales tax hike planned next April, the government said in a statement on Tuesday.

The decision was made by Prime Minister Shinzo Abe's cabinet hours after he said the government will raise the national sales tax to 8 percent in April from 5 percent in a bid to rein in the government's runaway debt.

($1 = 98.1250 Japanese yen)

(Reporting by Tetsushi Kajimoto; Editing by Shinichi Saoshiro)