The government and ruling parties have described the planned increase in the consumption tax rate as a "first step" because they have deemed the boost to 10 percent will not fully cover the shortfall in social security revenue, making a further hike unavoidable in the future.
In their draft outline of integrated reform of the social security and tax systems, compiled Friday, the rate hike to 10 percent is said to be "the first step to simultaneously achieve the goals of securing stable revenue sources for financing social security and regaining governmental fiscal health."
If the consumption tax rate is raised from the current 5 percent to 10 percent, the central and local governments will rake in a total of about 13.5 trillion yen more in annual revenue. (Yomiuri)
The government and ruling parties have described the planned increase in the consumption tax rate as a "first step" because they have deemed the boost to 10 percent will not fully cover the shortfall in social security revenue, making a further hike unavoidable in the future.
In their draft outline of integrated reform of the social security and tax systems, compiled Friday, the rate hike to 10 percent is said to be "the first step to simultaneously achieve the goals of securing stable revenue sources for financing social security and regaining governmental fiscal health."
If the consumption tax rate is raised from the current 5 percent to 10 percent, the central and local governments will rake in a total of about 13.5 trillion yen more in annual revenue. (Yomiuri)