Noda Cabinet faces struggle over sales tax hike
Prime Minister Yoshihiko Noda's government is likely to face an uphill battle over a plan to raise the consumption tax in the Diet session that convenes later this month.
The ruling Democratic Party hopes to quickly start deliberations on a draft budget for the fiscal year that begins in April.
But the opposition parties say Defense Minister Yasuo Ichikawa and Consumer Affairs Minister Kenji Yamanaka must step down before the debate begins, because the upper house has passed censure motions against them.
Noda is determined to carry out reform of the tax and social welfare systems. His proposal to raise the consumption tax to 10 percent in 2 phases was approved by the party at the end of December.
He plans to hold discussions with the opposition parties and submit the necessary bills for the tax increase by the end of March.
The opposition LDP and New Komeito argue that the proposed increase is a reversal of a pledge the DPJ made in its 2009 general election campaign.
They are calling for the early dissolution of the Diet and a general election.
Noda also faces opposition from members of his own party on the issue. Nine lawmakers left the DPJ at the end of last year to protest the approval of the tax hike proposal. Former DPJ leader Ichiro Ozawa has expressed opposition to the proposed tax rise.
Source: http://www3.nhk.or.jp/daily/english/20120101_21.html
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