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Consumption Tax in Japan Raised
« on: February 05, 2012, 01:04:58 PM »
Japanese Prime Minister Yoshihiko Noda said Saturday that the country may raise the consumption tax further while pursuing public pension and other social security reforms.

The comments, made in a speech at Keio University in Tokyo, signaled that Japan will face funding shortfalls in the future even if the 5 pct consumption tax is raised to 10 pct by October 2015 as proposed.

The comments may prompt opposition parties to increase pressure on the Noda government to present estimates for funding necessary to implement pension reform, people familiar with the situation said.

An estimate drawn up by the ruling Democratic Party of Japan last year shows that the country will have to raise the consumption tax by an additional 7.1 percentage points by fiscal 2075 when pension reforms are completed.

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