Gov't mulls raising consumption tax to 8% for reconstruction
TOKYO, April 19, Kyodo
The government led by the Democratic Party of Japan is considering raising the current 5 percent consumption tax to 8 percent for about three years to raise money for reconstruction of the country's northeastern region devastated by the March 11 earthquake and ensuing tsunami, DPJ senior lawmakers said Tuesday.
If realized, tax revenues will increase about 22.5 trillion yen and the amount will cover much of the extra expenditures for reconstruction expected in the current fiscal year, the lawmakers said.
The government has estimated that the damage from the natural calamities that left around 28,000 people dead or missing could amount to 25 trillion yen.
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