Japan PM Shinzo Abe to seek fresh mandate, delays increasing sales tax

Japanese Prime Minister Shinzo Abe said on Tuesday he would delay a planned rise in the nation's sales tax to 10% till April 2017 and call a snap election to seek a fresh mandate, just two years after taking office.

The economy unexpectedly slipped into recession in the third quarter, data released on Monday showed, a sign the pain from an initial rise in the sales tax to 8% from 5% in April was lasting longer than expected. Abe said he would dissolve parliament on Nov. 21.

No general election need be held until late 2016. But political insiders say Abe - who returned to power in December 2012 pledging to fix the economy with his "Abenomics" strategy of ultra-loose monetary policy, spending and reforms - wants to lock in his mandate while his ratings are relatively high and before tackling unpopular policies next year.