Japanese Prime Minister Yoshihiko Noda faces a possible split in his ruling party as parliament prepares to vote on a bill to double sales tax by 2015.
The vote comes after months of talks between the ruling Democratic Party of Japan (DPJ) and opposition parties.
The hike is part of Mr Noda's plan to cut debt and fund rising welfare costs.
But more than 50 DPJ members, led by former leader Ichiro Ozawa, are reportedly opposed to the bill, with some threatening to leave the party.
The bill is expected to garner enough support to pass, after agreement was reached with opposition parties.
But Mr Noda is under pressure to keep his party together as the DPJ would lose its majority in the lower house if 54 or more MPs left.
He would then be unable to pass other bills and could be forced to call an early election.
"This reform is not just for our generation. But for our future," Mr Noda said, making a final pitch to parliament.
The controversial tax hike has seen bitter disagreement and gridlock amongst Japan's lawmakers.
The cabinet approved an outline of the bill in February but has been mired in negotiations since.
Mr Noda wants to raise the tax - called consumption tax in Japan - from 5% to 10% by 2015.
He says the move is key to addressing Japan's financial woes and help fund the needs of its aging population.
Japan estimates that 40% of its population will be of retirement age by 2060 - meaning the taxes of far fewer workers supporting far more retirees.
Several Japanese prime ministers have mooted the idea of raising sales tax in the past, but the move was deeply unpopular with voters.
Mr Ozawa, who has been leading the charge against Mr Noda over the tax hike, is a veteran politician leading the biggest fraction within the DPJ.
The lawmaker, who was cleared of charges in a long-running political funding scandal in April, is a powerbroker known as the "shadow shogun".
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