YOSHIHIKO NODA, the prime minister of Japan, is expected to reshuffle his cabinet as he tries to persuade the country’s opposition to help pass a bill to increase taxes.
Noda today met Ichiro Ozawa, the head of an important group in the ruling party, but the latter is against the proposed tax rise and the pair failed to agree on the measure.
Noda said after his meeting with Ozawa that he was now in talks with the opposition, which is demanding the removal of two cabinet ministers as the price of its support.
Japan’s public broadcaster NHK reported that a cabinet reshuffle has been scheduled for tomorrow.
Noda believes the tax plan is needed to trim public debt and fund recovery projects connected to last year’s earthquake, tsunami and nuclear disasters. His proposals would see the 5% sales tax double by 2015.
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Ozawa, who leads a faction in the ruling party, has said reforms, recovery and cutting waste must come before asking the public to bear a bigger tax burden.
“It is unfortunate, but I was not able to gain his support,” Noda told reporters. “I will move forward with my talks [with the opposition].”
The opposition is demanding the removal of Naoki Tanaka, the defence minister, over gaffes, and Takeshi Maeda, the minister of land, infrastructure, transport and tourism, because of allegations of misbehaviour over an election.