ID :
197345
Tue, 07/26/2011 - 14:35
Auther :
Shortlink :
https://oananews.org//node/197345
The shortlink copeid
Gov't discusses 10 tril. yen tax hike for reconstruction+
TOKYO, July 26 Kyodo -
The government discussed Tuesday a plan to provisionally raise taxes and secure 10.3 trillion yen (some $132 billion) during five years starting from fiscal 2012 in a bid to finance reconstruction work following the March earthquake and tsunami.
The discussion came as Prime Minister Naoto Kan and his Cabinet members met to add the final touches to the basic guidelines for relief programs, which the government aims to complete by the end of this month. They are trying to include the tax increase plan in the guidelines although there are some negative opinions within the ruling Democratic Party of Japan.
The government has estimated the total cost of 23 trillion for a 10-year period of reconstruction and is planning to spend 19 trillion yen during the first half of the decade, according to a draft plan submitted to a ministerial meeting on Monday.
It has already created two extra budgets for fiscal 2011 worth 6 trillion yen. Excluding several trillion yen to be ensured through spending cuts and other efforts, the government would raise another 10.5 trillion yen by issuing ''reconstruction bonds.''
The emergency bonds would be serviced with proceedings from the envisaged tax hikes, which could possibly raise corporate and individual income taxes. The arrangement would be a response to calls from those arguing Japan should not easily issue new debt and should keep pursuing fiscal discipline even after the March 11 disaster, which added to pressure for the government to spend.
The government is also considering securing around 200 billion yen in extra revenues by selling some state-owned assets, including the shareholdings in subway operator Tokyo Metro Co.
As for spending cuts, it aims to shelve and scale down some key policies and raise a total of 2.4 trillion yen in a four-year period starting next April.
==Kyodo
The government discussed Tuesday a plan to provisionally raise taxes and secure 10.3 trillion yen (some $132 billion) during five years starting from fiscal 2012 in a bid to finance reconstruction work following the March earthquake and tsunami.
The discussion came as Prime Minister Naoto Kan and his Cabinet members met to add the final touches to the basic guidelines for relief programs, which the government aims to complete by the end of this month. They are trying to include the tax increase plan in the guidelines although there are some negative opinions within the ruling Democratic Party of Japan.
The government has estimated the total cost of 23 trillion for a 10-year period of reconstruction and is planning to spend 19 trillion yen during the first half of the decade, according to a draft plan submitted to a ministerial meeting on Monday.
It has already created two extra budgets for fiscal 2011 worth 6 trillion yen. Excluding several trillion yen to be ensured through spending cuts and other efforts, the government would raise another 10.5 trillion yen by issuing ''reconstruction bonds.''
The emergency bonds would be serviced with proceedings from the envisaged tax hikes, which could possibly raise corporate and individual income taxes. The arrangement would be a response to calls from those arguing Japan should not easily issue new debt and should keep pursuing fiscal discipline even after the March 11 disaster, which added to pressure for the government to spend.
The government is also considering securing around 200 billion yen in extra revenues by selling some state-owned assets, including the shareholdings in subway operator Tokyo Metro Co.
As for spending cuts, it aims to shelve and scale down some key policies and raise a total of 2.4 trillion yen in a four-year period starting next April.
==Kyodo
