Japan lower house OKs sales tax hike

A total of 363 out of the 469 votes cast supported Prime Minister Yoshihiko Noda’s plan to double sales taxes from 5 percent to 10 percent by 2015.

Fifty seven members of the ruling Democratic Party of Japan voted against the bill.

“As the result, the bills to partially revise the consumption tax law were passed,” lower house speaker Takahiro Yokomichi said in the parliament on Tuesday.

The plan has intensified a ruling party split that could threaten its majority status and leave the premier vulnerable to a vote of no-confidence.

It has been sent to the opposition-controlled upper house where the bill will likely be passed, as Noda has already reached a deal with the opposition parties to support his bill in upper house.

The government says the tax hike will help curb the country’s high public debt and fund rising welfare costs.

Critics of the bill, however, say the prime minister reneged on the promises the ruling party made when it came to power in 2009.

DB/HJL

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