Prime Minister Yoshihiko Noda and his ruling Democratic Party of Japan said Thursday they have abandoned attempts to pass the tax hike bill Friday, but an internal rift looms as Ichiro Ozawa officially declared his intention to vote against the legislation.

Also on Thursday, the scheduled end of the current Diet session, the DPJ extended it by 79 days through Sept. 8 to clear the stack of bills still under deliberation in the divided legislature. The DPJ now plans to put the tax bill to a vote Tuesday.

But with about 50 of Ozawa loyalists expected to follow his lead on the contentious tax bill and rumors circulating they may even be preparing to bolt from the DPJ and form a new party, the outlook for Noda's administration appears grim.