Japan OKs tax hike; PM faces election pressure
TOKYO, Aug 10 (AP/UNB) - Japan's parliament has passed a bill to double the country's consumption tax over the next three years. The increase comes as pressure mounts for struggling Prime Minister Yoshihiko Noda to call fresh elections.
The hike was approved Friday in the upper house of parliament by a fragile coalition of Noda's ruling party and two of its main rivals.
To keep the opposition parties from jumping ship, Noda has promised he will dissolve the more powerful lower house of parliament and call elections "sometime soon" to prove his increasingly unpopular administration still has a public mandate.
Supporters say the tax increase, from 5 to 10 percent, will boost government revenues as Japan tries to deal with its swollen national debt. Opponents say it will stifle economic growth.
The hike was approved Friday in the upper house of parliament by a fragile coalition of Noda's ruling party and two of its main rivals.
To keep the opposition parties from jumping ship, Noda has promised he will dissolve the more powerful lower house of parliament and call elections "sometime soon" to prove his increasingly unpopular administration still has a public mandate.
Supporters say the tax increase, from 5 to 10 percent, will boost government revenues as Japan tries to deal with its swollen national debt. Opponents say it will stifle economic growth.
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