Gov't must decide on sales tax hike to cover costs of aging: Nukaga

Friday 20th June, 01:56 PM JST

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14 Comments

Altria at 02:38 PM JST - 20th June

‘‘Unless the government makes a decision, we cannot move forward,’’

How about we decide "No"
serindipity at 02:51 PM JST - 20th June

How about the 1 million odd foreigners in Japan that will have to contribute to a corrupt pension system?
some14some at 02:55 PM JST - 20th June

I am ready to accept and pay whatever the percentage hike (cause i have no choice) :)
nisegaijin at 03:03 PM JST - 20th June

they need to be smarter about this. If they raise consumption tax, they will significantly damage consumer spending. I am not even sure by how much their sales tax revenue will go up, if it will do so at all. Any kind of tax hike is always bad for economy. They will have to increase money supply to compensate, that will cause inflation and even further price hikes.

To avoid having to tamper with money supply, they have to lower income taxes to have more money available to consumers, so that sales tax hike wouldn't hurt them as much.
Altria at 03:26 PM JST - 20th June

To avoid having to tamper with money supply, they have to lower income taxes to have more money available to consumers, so that sales tax hike wouldn't hurt them as much.

Even better, they're planning to raise the minimum wage - that way they score some extra tax as well.
wilbur at 06:34 PM JST - 20th June

just don't pay japanese tax
sharky1 at 08:52 PM JST - 20th June

No decision is the best decision. How about getting rid of the mandatory retirement age instead? Then the elderly can continue working if they desire. They continue to pay taxes, are able to support themselves, have meaning in day to day life, and we will not have to raise taxes...which, by the way, would be foolish, destroy the economy, cause many more businesses to go bankrupt, and increase unemployment...think about it.
thepro at 09:06 PM JST - 20th June

use the damn petrol tax money
GW at 10:36 PM JST - 20th June

Referring to a scheduled rise in fiscal 2009 of the state’s financial burden of the basic pension system from the current one third to one half, the finance minister pointed out the need for the general public to share the burden.

Clearly the finance minister is unaware that the YEN the govt uses for "their payment " towards pension, health ins etc etc also comes from the taxes payers & then the govt wastes it, looses it and/or steals it, there is no hope for this system
smithinjapan at 11:48 PM JST - 20th June

GREAT decision right before an election, you dolt! Well, pure cannon fodder for those against the LDP. Anyway, I say fire 90% of politicians, construction company contracts, and the amakudari in every single City Hall in Japan, and you'll make BILLIONS with no negative result to the work force. What's more, you'll get young and productive people to fill the void and actually work, thus increasing productivity in general, and contributing to the overall economy.... without touching taxes or hurting pension. All the amakudari are collecting pension while getting a salary for doing nothing anyway, so why not just cut their salaries.
Patrick Smash at 12:17 AM JST - 21st June

Don't raise consumption tax, it will cause recession.

Increase tobacco tax. Cut waste. Get rid of amakudari. Means test the pension. Change pensionable age to 70 with immediate effect for all under 60s.
pathat at 05:59 PM JST - 21st June

Increase tobacco tax

It is hard for the Finance Ministry to call for a significant raise in the tobacco tax when they are the ones reaping the rewards from Japan Tobacco`s profitability due to the 50% stock they own in the company.

Don't raise consumption tax, it will cause recession

The ghost of Ryutaro Hashimoto speaks.
damexicanbuda at 02:14 AM JST - 22nd June

I say do away with the consumption tax! If they really want to birng in more revenues, how about taxing tabacco, alcohol and all of the prostitues, hostesess, etc..the "rich" guys in the Japanese governmet must know that were they go and have fun in Ginza, Akasaka etc..is where most of the money is being wasted. Too many old people in Japan are barely making a living, they should not be punished for the terrible wasteful corrupt politicians who are ruining this country!
proxy at 03:25 PM JST - 22nd June

How about using some of that 1 trillion US dollars foreign reserve Japan is sitting on. Pay the old people 20% of their pension in US dollars.