02/Sep/2014 - Last News Update: 00:01

Japan parliament passes doubling of sales tax to 10%

Category: Business

Published: 10th Aug 2012 12:38:06

Japan's parliament has passed a contentious bill to double the country's sales tax by 2015, a move that could spark an early election.

Japan's Prime Minister Yoshihiko Noda has argued the rise will help rein in Japan's huge public debt and rising welfare costs.

However, some say the tax will severely hurt consumer spending.

Opposition parties supported the bill on the condition that Mr Noda set an election date.

This was the final hurdle for Mr Noda who has fought to bring the tax to 10% since he came into power in September 2011 as part of a financial reconstruction.

It has led to disagreements even within the ruling Democratic Party of Japan, with more than 50 lawmakers opposed to the tax leaving the party.

The tax bill was passed on Friday after a last minute deal between Mr Noda and the main opposition Liberal Democratic Party.

Mr Noda has promised to dissolve the lower house "in the near term" in return for endorsement of the bill in the opposition-controlled upper house.

Most bills must pass both chambers of the Diet before they become law.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Japan parliament passes doubling of sales tax to 10% [Online] (Updated 10th Aug 2012)
Available at: http://www.ukwirednews.com/news/1445587/Japan-parliament-passes-doubling-of-sales-tax-to-10 [Accessed 2nd Sep 2014]

News In Other Categories

  • Scottish independence: Video emerges of referendum 'assault'

    A video has emerged which appears to show a supporter of the United Kingdom kicking out at a female protestor.
  • China accuses MPs of Hong Kong 'interference'

    The Chinese authorities have accused British MPs of interfering in Hong Kong's affairs, Newsnight has learned.
  • Eight PSNI officers disciplined over Jonathan Magee death

    Eight police officers have been disciplined over a failed search for a missing man who was later struck and killed by a train.
  • Boris Island airport plan 'to be rejected'

    A plan for an island airport in the Thames estuary will be rejected, the BBC understands.
  • Nato military flights surprise over Cardiff and Newport

    A series of training flights by military helicopters and other aircraft ahead of the NATO summit startled residents in Newport and Cardiff on Monday.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com