Japan's prime minister told parliament Tuesday he will move to double sales tax, warning that the future of the world's third-largest economy depends on turning the rising tide of public debt.
Yoshihiko Noda has staked his premiership on the issue and in his policy speech opening the new session of the Diet said he would submit legislation by the end of March that will ramp up the cost of everything from rice to Rolexes.
However, underlining the huge task ahead of Noda, the Bank of Japan also on Tuesday lowered its growth forecasts for the economy, predicting a contraction in the year to March 31, and slower growth than first tipped in the next year.
Less than five months into the job, Noda is trying to sell the deeply unpopular tax rise to a sceptical public, and avoid becoming the sixth prime minister in as many years to disappear beneath the waves of Japan's viciously factional politics. (AFP)
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