Prime Minister Yoshihiko Noda has proposed putting off the first phase of the planned consumption tax hike by six months from October 2013 to April 2014.
Noda made the proposal late Thursday at a meeting of the ruling Democratic Party of Japan's tax reform panel. The panel adopted the plan, under which the consumption tax will be hiked from the current 5% to 8% in April 2014 and to 10% in October 2015.
Noda has been under intense pressure from within the DPJ as well as opposition parties who say a hike in the consumption tax will have a disastrous effect on the economy.
Nine members of the DPJ have already said they plan to quit the party in opposition to the plan to hike the consumption tax because they say it reneges on the party's 2009 election manifesto.
Meanwhile, opposition Liberal Democratic Party (LDP) leader Sadakazu Tanigaki said the week's developments show that the DPJ is crumbling from within, NTV reported. He called on Noda to seek a manadte from the people in an election.© Japan Today