Because of a deal between the ruling Democratic Party of Japan and the opposition Liberal Democratic Party and Komeito, bills incorporating Prime Minister Yoshihiko Noda's plan to raise the consumption tax are likely to be passed by the end of the current Diet session, which has been extended by 79 days to Sept. 8.
Since former DPJ chief Ichiro Ozawa and his followers are poised to cast "no" votes on the bills, however, the DPJ may face the danger of breaking up. Still, the bills have a good chance of being enacted because the LDP and Komeito will vote for them.
Mr. Noda's plan to raise the consumption tax from the current 5 percent to 8 percent in April 2014 and to 10 percent in October 2015 appears unwise given Japan's long period of deflation.