Yoshihiko Noda, the Japanese prime minister, is set to reshuffle his cabinet this week in an attempt to win opposition backing for a consumption tax increase, which he believes is needed to tackle Japan’s huge public debt and restore the country to fiscal health.
Mr Noda, who has staked his political career on passing a bill to double Japan’s consumption tax from its present 5 per cent by the middle of the decade, said he intended to reshuffle his cabinet today and pave the way for discussions with the opposition.
“Our basic stance is to make the utmost efforts to win the understanding of all members of the opposition on the consumption tax bill,” Mr Noda said.
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