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Agreement between parties on Japan sales tax increase

18 June 2012 Last updated at 05:53 BST

Japan's main political parties have reached an agreement on a plan to double the country's sales tax, after months of parliamentary deadlock.

Prime Minister Yoshihiko Noda's Democratic Party of Japan and the main opposition Liberal Democratic Party reached a deal over the weekend to raise the tax, a move which many see as vital in raising new revenues for the government.

The BBC's Mariko Oi in Tokyo says the sales tax agreement is a significant coup for the Japanese prime minister.