Debate on tax reform to start as early as in March: Kan+

TOKYO, Feb. 14 Kyodo -
Finance Minister Naoto Kan said Sunday the Government Tax Commission will start
discussions on a drastic tax reform as early as in March with an eye to raising
the current 5 percent consumption tax.

Kan, who previously put expenditure cuts first for securing financial resources
and had indicated that such talks would start from fiscal 2011, is apparently
determined to move up the debate to boost tax revenues in the face of rising
expenditures, particularly for social security costs.
Speaking to reporters in Tokyo, Kan expressed willingness to start ''a
full-fledged debate on taxes in general, including income, corporate and
consumption'' possibly in March when the budget bill for fiscal 2010 is
expected to have cleared the Diet.
Prime Minister Yukio Hatoyama has approved the idea, according to Kan.
He added that the timing for raising the tax rates will be discussed from now.
Kan said the tripartite ruling coalition has agreed not to raise the
consumption tax for four years during the current term of House of
Representatives members which expires in August 2013, and the government will
seek the public's judgment if it takes steps to drastically reform the tax
system.
While state minister for national policy Yoshito Sengoku supported the move to
discuss the tax issue at an early time, another Cabinet member emphasized that
a debate specifically seeking to raise the tax rates would be difficult
considering that the people think there are more areas where administrative
costs can be cut.
Meanwhile, Sadakazu Tanigaki, leader of the opposition Liberal Democratic
Party, criticized Kan's move as going against the Democratic Party of Japan's
pledge not to raise the consumption tax for four years.
''It is tantamount to admitting that they are no longer able to maintain their
pledge,'' Tanigaki said in an address in Kanagawa Prefecture. ''They should
take responsibility over their own assertions.''
==Kyodo
2010-02-14 21:45:53