A critical vote on doubling the sales tax will take place in the Japanese lower house today with Sankei saying approx 55 DPJ members will vote against the bill but that it will pass with opposition support.
The turmoil could force PM Noda to resign but he signaled some compromise on the economy, saying he may bring about a supplementary stimulus budget.
Sankei also reports that former DPJ leader Ozawa may break away from the DJP and form a new party as soon as next week, as a result of the tax hike. He could take about 50 members with him The DPJ holds 289 of the 480 seat Lower House and would fall below majority territory if more than 49 members leave.