Abe plans Dec 14 snap polls to bolster support
TOKYO: Japanese Prime Minister Shinzo Abe plans to hold snap elections on Dec 14, two years ahead of schedule, as he seeks to bolster his public suppor t by delaying another scheduled tax hike, reports said yesterday.
Abe is expected to announce his decision at a press conference on Tuesday, according to major media, including the Yomiuri Shimbun.
The development comes as the Abe government moves to postpone a consumption tax hike to 10.0 per cent from the current 8.0 per cent amid a series of weak economic indicators fuelling fears of a recession.
The tax hike was originally scheduled for October 2 015, but the government wants to delay it until April 2 017 to safeguard fragile recover y, accord i ng to loca l media.
Abe’s decision would cut short the current four-year term of the powerful lower house, which is scheduled to expire in December 2016.
The premier wanted an early election while opposition parties remain weak after the ruling pa r ty’s spectacu la r elect ion victory two years ago, pundits said.
Abe also wanted to put a national election behind him before he pushes unpopular bills such as those related to expanding roles of Japanese mi l itar y, Kyodo News said.
Japan raised the consumption ta x from 5.0 per cent to 8.0 per cent in Apri l in a bid to susta in the g rey ing nat ion’s vast pension system while slowing the growth of its public debts.
Under the law, the tax was going to rise again to 10 per cent from October 2 015, but the law also stipulated that the government must take measures to protect the economy, including stopping the tax increase.
Economists have for years said that Japan needs to increase the consumption tax to reduce its enormous national debt.
But the earlier tax hike discouraged consumer spending, and f uelled fears that the second hike could smother that recover y out a ltoget her, and hurt Abe politically.
Abe has said he would decide whether to raise the tax after reviewing the July-September economic growth data, to be released on Monday, while the prospect for the second tax hike became increasingly unpopular among voters.
Government officials could not be reached for comment yesterday.
Abe, currently in Australia for the Group of 20 meeting, will return home on Monday and confer with his ruling coalition par tner, said the Sankei and the Mainichi.
He will order drafting of an additional budget on Tuesday, before announcing his decision to dissolve the lower house, the Mainichi said.