http://home.kyodo.co.jp/modules/fstStory/index.php?storyid=415664
*Yosano eyes phased consumption tax hike to 10% *
TOKYO, Dec. 21 KYODO
*Economic and Fiscal Policy Minister Kaoru Yosano* said Sunday he
envisions raising the 5-percent consumption tax in stages to 10 percent.
The government is seeking to carry out tax reform in five years
starting in fiscal 2011, including a consumption tax hike.
''A 5-percentage-point hike (all at once) in fiscal 2011 would give a
major shock to the economy,'' Yosano said on a television program.
The hike would be done ''in stages to (the increase of) 5 percentage
points,'' he said.
He suggested there would be such choices as raising the tax by 1 point
each year or increasing it by 2 points in fiscal 2011 and raising it by
another 3 points later.
Yosano said the consumption tax money would be used for elderly care,
pension and medical services.
The national finances, however, would face difficulty even after the
consumption tax hike to 10 percent, he said, suggesting more hikes would be
necessary later to finance social security costs.
==Kyodo
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