Japanese PM to delay consumption tax hike; possible no-confidence

May 30, 2016 (LBO) – Japanese Prime Minister Shinzo Abe has met top executives of his Liberal Democratic Party to discuss the proposal to delay the scheduled April 2017 consumption tax hike. Japanese media reported that Vice-President Masahiko Komura, General Council Chairman Toshihiro Nikai, and Policy Research Council Chairman Tomomi Inada were among them. Shinzo Abe has said that Japan should mobilize policies to address a global risk and proposed that the tax increase from 8 to 10 percent should be postponed to October 2019.

Recently concluded G7 leaders summit ended with a message that the global economy is facing the risk of slipping into crisis, if appropriate measures are not taken. Senior party officials have also discussed whether to dissolve the lower house to seek a public mandate for the proposal in a general election. Meanwhile Japan’s opposition parties are to jointly submit a no-confidence motion to the Lower House on Tuesday against the Cabinet led by Abe.