The ruling Democratic Party of Japan will unveil a new proposal by mid-December on raising the consumption tax, an aide to Finance Minister Jun Azumi said Thursday. The proposal is being worked out by two DPJ panels tasked with tax and social security reforms, TBS reported.
The two panels have been discussing the issue since summer. The rate of the tax increase is expected to be 10% by 2015, TBS quoted DPJ sources as saying. A bill on the issue is expected to be submitted to the Diet by early spring.
There has been strong opposition to a consumption tax hike both among lawmakers and industry groups who say it will have a negative effect on the Japanese economy. However, the Finance Ministry says that if there is no tax hike, the nation's social security coffers will fall short by 2.7 trillion yen in 2016.© Japan Today