Sales tax increase approved by Japan's cabinet

The Japanese cabinet has passed a plan to double sales taxes in an attempt to control the soaring costs of public debts.

The plan, which needs parliament's approval, will see taxes raised from the current 5% to 8% in April 2014, and then up to 10% by October 2015.

Japan has revealed its social security costs will rise by 1tn yen ($12.6bn; £8bn) a year as its population ages.

It estimates 40% of the population will be of retirement age by 2060.

However, the plan is unpopular with both the opposition parties and politicians within the ruling Democratic Party of Japan.    Read More

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