Raising the consumption tax: a small step forward

The government has finally succeeded in submitting a bill to parliament to increase the consumption tax. This is has been a long time coming and is an important step forward in putting the public finances on a sustainable path. However, the passage of the bill is likely to be difficult and have political casualties. There is a risk either that an early election will have to be called, or that yet another Japanese Prime Minister will have to resign in order to secure the passage of the legislation through both houses.