The FINANCIAL — Yukio Hatoyama, leader of the opposition Democratic Party of Japan, said Prime Minister Taro Aso's declaration that the economy is on a recovery track is "out of touch with the people's feelings."
Hatoyama cited the fact that average incomes shrank by about 1 million yen over the decade leading up to the financial crisis that erupted last autumn.
"In a debate against Aso held here on August 17 afternoon in the run-up to the Aug. 30 lower house election, Hatoyama also raised the issue of the ruling coalition's plans to implement drastic tax reform, including a consumption tax hike, after the economy regains its strength. He asked if the premier really intends to raise taxes under the present circumstances," Nikkei reports.
Aso countered by emphasizing the results he has delivered so far with his stimulus measures.
"I've said it will take a good three years for the economy to heal completely, meaning we are still at the halfway point," Aso said.
The prime minister did not clearly state when he would raise the sales tax.
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