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Abe Rival Says Japan Sales Tax Hike Is ‘Crazy,’ Wants It Abolished

  • Increase to 10% will ‘put brakes’ on consumption: Yamamoto
  • Abe administration failed to spend enough to defeat deflation
Taro Yamamoto poses for a photograph in Tokyo.
Taro Yamamoto poses for a photograph in Tokyo.Photographer: Kentaro Takahashi/Bloomberg

Just as Japan braces itself for a hike in the sales tax to 10% on Oct. 1, one of Prime Minister Shinzo Abe’s would-be rivals is calling for it to be abolished altogether.

Taro Yamamoto, a former actor turned leader of an upstart party that won two seats in the country’s July upper house election, says the increase from the current 8% will put a chill on consumption, despite the government’s efforts to alleviate such concerns.