Consumption Tax Hike Seen Discouraging Abe from Dissolving Lower House Early


Tokyo, Oct. 1 (Jiji Press)--Now that the consumption tax has been raised, Prime Minister Shizo Abe is widely expected to refrain from breaking up the House of Representatives for a snap election at least until autumn next year.

The widespread view within the government and the ruling coalition now is that the all-important lower chamber of parliament will be dissolved in October next year or later for a general election, people familiar with the matter said.

"No ruling party won a national election held soon after a tax hike," said an aide to Abe.

The 1989 election for the House of Councillors, the upper chamber, was held just after the consumption tax was introduced, with the then ruling Liberal Democratic Party suffering a humiliating defeat.

The 2012 Lower House election was called after the administration led by the now-defunct Democratic Party of Japan decided to raise the tax rate to 10 pct in stages. In the poll, the DPJ faced a crushing defeat.

[Copyright The Jiji Press, Ltd.]

Jiji Press