[QODLink]
Asia
Japan's lower parliament passes tax increase
Prime minister risks party split in negotiating new tax aimed at shrinking massive public debt.
Last Modified: 26 Jun 2012 15:39

Japan's lower house of parliament has voted to double the sales tax to 10 per cent by 2015, as the government tries to grapple with massive public debt.

Japan’s prime minister, Yoshihiko Noda, had staked his career and his government on getting the tax rise through parliament; he struck a deal with the opposition to ensure its passage. But his biggest challenge came from within his own Democratic Party – with the powerful Ichiro Ozawa and 56 of his supporters voting against their leader.

The party now faces a split which could end its period in office. The question now is whether raising the sales tax will be a first step towards paying down Japan’s 12 trillion dollar public debt – or will it mean still less tax revenue in the long term.

The opposition-controlled upper house should give its approval to the bill within weeks.

Al Jazeera's Harry Fawcett reports.

151

Source:
Al Jazeera
Topics in this article
People
Country
Organisation
Featured on Al Jazeera
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Israel's Operation Protective Edge is the third major offensive on the Gaza Strip in six years.
Muslims and Arabs in the US say they face discrimination in many areas of life, 13 years after the 9/11 attacks.
At one UN site alone, approximately four children below the age of five are dying each day.
Featured
Rights groups say the US prosecution of terrorism cases targets Muslims and are fraught with abuses.
Local painters forgo experimentation to cater to growing number of foreign buyers.
Cyprus is a tax haven and has long attracted wealthy Russians, but it could become a European energy hub.
Palestinians in Gaza have been shocked by the scale of Israeli destruction, as long-term truce efforts continue.
The Positive Action Foundation Philippines, manned by HIV-positive staff, provides care to those who have no one else.
join our mailing list