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Japan PM Shinzo Abe may face no-confidence motion over tax issue

By FnF Desk | PUBLISHED: 30, May 2016, 12:03 pm IST | UPDATED: 31, May 2016, 13:33 pm IST

Japan PM Shinzo Abe may face no-confidence motion over tax issue Tokyo: Leaders of Japan's four opposition parties hoped to jointly submit a no-confidence motion against the Cabinet of Prime Minister Shinzo Abe over his proposal to delay the scheduled hike in the consumption tax rate.

The leaders of the Democratic Party, the Japanese Communist Party, the Social Democratic Party, and the People's Life Party plan to meet later on Monday. They hope to submit the motion to the Lower House on Tuesday, public broadcaster NHK reported.

Abe on Saturday announced the tax increase from 8 to 10 percent should be postponed by 2-and-a-half years to October 2019.

Finance Minister Taro Aso said that if the tax hike is postponed, the prime minister should dissolve the Lower House to seek a public mandate in a general election. The president of the leading opposition Democratic Party, Katsuya Okada, said that if Abe wants the election, his party is ready.

The chairperson of Japanese Communist Party, Kazuo Shii, demands that Abe should resign.

Shii said Abe is not qualified to be at the helm of Japan's economy as his proposal shows his growth strategies, coupled with his plan to sharply increase the consumption tax, have failed.

Some officials of the government and governing parties are concerned over the possible impact the delay could have on plans to expand social security programs and efforts to restore fiscal health.

Meanwhile, speaking to Reuters in an interview, Deputy Chief Cabinet Secretary Koichi Hagiuda also said he could not rule out the possibility that Abe would call a snap election for parliament's lower house if opposition parties submit a threatened no-confidence motion.

Speculation has swirled that Abe would postpone the sales tax hike and call a snap general election in tandem with a scheduled poll for parliament's upper chamber on July 10.

"It has been decided (to raise the tax) from next April. As the prime minister has repeatedly said, unless a special situation arises, wouldn't going ahead as planned be the better way to win the trust of international society?" Hagiuda said.

He added that he did not think the current economic situation warranted a change in the plan.
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