TOKYO: Japan’s Prime Minister Yoshihiko Noda sacked five members of his cabinet yesterday, bowing to opposition demands for ministerial scalps as he sought cross-party support for a crucial tax hike.

As he announced the rejig Noda called on the Liberal Democratic Party (LDP) to back a bill that would eventually double sales tax in an attempt to tackle Japan’s debt mountain, currently twice its GDP.

“I decided to reshuffle and strengthen the cabinet so as to create an environment that enables progress in issues including an overall reform of social security and tax,” Noda told reporters.

 FROM: AGENCE FRANCE PRESSE



Noda has staked his premiership on the sales tax, a move international bodies, academics and journalists all agree is a sensible measure in the battle to plug the gaping hole in the budget.

Part of the proceeds would be used to finance snowballing social security costs resulting from Japan’s rapidly greying society.

But in the highly factionalized world of Japanese politics, Noda has failed to secure the backing of one of his own party’s key figures and has instead been left trying to placate an opportunist opposition.

Ichiro Ozawa, a powerbroker who leads around 100 lawmakers in Noda’s own Democratic Party of Japan (DPJ), has set his stall firmly against the tax rise, which he sees as politically unacceptable.

Some of Monday’s sackings were part of the price Noda must pay if he wants cross-party backing for his bill.

“Toward the end of the current parliamentary session, we will face a crucial decision that will affect the future of Japan,” he said.

“I call for all the politicians, on both sides of the house, to take these proposals seriously,” he said, adding the tax bill would come before the lower house before the parliamentary session ends on June 21.

Defense minister Naoki Tanaka and transport minister Takeshi Maeda lost their jobs after both being censured by the opposition-controlled upper house in April.