Abenomics and the Japanese VAT tax hike Abenomics seems to me like a straightforward and modern plan of economic reflation through monetary easing and some attempt at structural reform.

While it's still early, it looks like many of the predicted effects of this approach have begun to materialize:  unemployment is lower, earnings are higher, currency has deflated resulting in a rise in exports and improvements to corporate earnings.  Capital has, unfortunately, accumulated on corporate balance sheets rather than re-entered the economy, but even this is a known effect of easing.

One thing I don't understand (aka my question) is:  why did the Japanese government seek to raise consumption tax (VAT) during this process?  

It would seem that the whole point of easing is to stimulate productive money circulation, and implementing a consumption tax when consumers are likely to suffer in the initial stages from currency devaluation seems very counterproductive to the cause.  If the government actually needed the funds then surely there were other approaches available (borrowing or deferred taxation) which would have had less negative impact on the overall easing programme?
Everybody seems to be worried about the raise in the consumption tax, and how it has thus far crippled the efforts to bring the Japanese economy out of stagnation. But Japan has 200% of DGP in public debt, and it cannot leave its public finances go south, not even temporarily.  

My impression is that it was the choice to lower corporate tax and "in exchange" increase V.A.T. (perhaps under the impression that it was low, if they looked at European Union levels). Demand was supposed to strengthen through direct transfers, while lowering corporate tax is to boost business initiatives, towards investment but also give some added room to increase wages (to help demand).

We' ll see. Up to now, it doesn't go very well.

ADDENDUM  

That the increase in the Sales Tax had as its target to take care of the public finance side of the equation is clearly stated in the IMF-report on the matter, in which we read


  "The consumption tax rate increase in April to 8 percent was a major achievement, but is only a first step towards fiscal
  sustainability...The second consumption tax rate increase in 2015 to
  10 percent with a uniform rate should be confirmed. Raising the tax
  rate further at a moderate pace would help establish fiscal policy
  credibility. Staff estimates that fiscal consolidation in 2015 would
  slow growth by ½ percent, leaving growth in 2015/16 still above
  potential under the baseline."


A quick journalistic take can be found here.