The ruling coalition was expected Monday evening to delay until the end of December the decision on whether to end the Tohoku reconstruction surcharge for companies a year earlier than planned, amid mounting criticism that it would not lead to wage hikes — one of the arguments in favor of the move.
The ruling bloc is likely to continue thrashing out the thorny surcharge issue while soliciting companies to raise salaries. The administration in September also kicked off three-way talks between the government, private-sector leaders and labor unions in a drive to boost salaries.
"It is hard to explain the termination (of the levy) to the disaster-stricken people," said Takeshi Noda, the head of the Liberal Democratic Party tax panel after it held an executive meeting Monday. "To end deflation, the government has to take charge in raising wages."
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