Japan rolled out a twice-delayed increase in the sales tax to 10 percent from 8 percent on Tuesday, a move that is seen as critical for fixing the country's tattered finances.

It is the third time that Japan raised its consumption tax since 1997. The first one was in 1997, when the tax went from 3 to 5 percent. The previous one was five years ago.

When the government raised the tax to 8 percent from 5 percent in April 2014, a last-minute buying spree and a subsequent pullback in demand caused a big downward swing in consumer spending, which led to a severe economic downturn.

Abe said the tax hike would help pay for social security services in an aging society, such as making preschool education free, lowering nursing care insurance premiums, and providing payouts to the elderly with low pension benefits.

"This will be a step to proceed with an insurance system for all generations, under which children and the elderly can feel at ease," Abe told reporters on Tuesday. "As for impacts from the tax hike, we'll take all possible steps."

Both Japanese citizens and foreigners have to pay the consumption tax when they spend money in Japan.

Japan is a popular destination for overseas tourists. Although the consumption tax has only gone up 2 percent, the move will still increase a visitor's travel costs.

Shopping might be least affected for foreign tourists. Since May 1, 2016, the Japan Tourism Agency lowered the tax threshold for consumables and general merchandise to 5,000 yen (about 46.12 U.S. dollars). This means that tourists are immune from the raising of consumption tax if they spend more than 5,000 yen.

In terms of catering, accommodation and transportation, the impacts are apparent. According to Yicai, canned fish food has gone up from 7 to 10 percent, ice cream has seen a rise to 12 percent from 6 percent, while instant noodles have hit 8 percent up from 3 percent.

"The cost of dining, living and transport is up for sure," a sales worker in Japan told CGTN Digital.

But she doesn't think the number of tourists coming to Japan will drop a lot, since most tourists typically spend more than 5,000 yen, which means they don't need to pay any tax except for a 1.55-percent service fee.

"The effect of the consumption tax is smaller than the exchange rate (change)," said she.

(With input from Reuters)