ID :
197370
Tue, 07/26/2011 - 16:10
Auther :
Shortlink :
https://oananews.org//node/197370
The shortlink copeid
Gov't discusses 10 tril. yen tax hike for reconstruction
TOKYO, July 26 Kyodo - The government discussed Tuesday a plan to raise taxes to secure 10.3 trillion yen ($132 billion) over five years from next April to finance reconstruction work following the March earthquake and tsunami.
Prime Minister Naoto Kan and Cabinet members met to add the final touches to the basic guidelines for relief programs, which the government aims to adopt on Friday. The draft guidelines mentioned the tax increase plan, but the Cabinet members did not finalize it, reconstruction minister Tatsuo Hirano told reporters after the meeting.
Cabinet ministers want to include the plan in the guidelines, but there is opposition from within the ruling Democratic Party of Japan by members opposed to increasing taxpayers' burdens.
''We will draw up the guidelines within July,'' Kan told the meeting. ''We have been left with limited time. But I want you to sufficiently discuss this issue in order to proceed with reconstruction as quickly as possible.''
The government has estimated the total cost at 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 compiled and passed two extra budgets for fiscal 2011 totaling 6 trillion yen to fund reconstruction work.
To help fund the overall reconstruction bill, the government is looking at raising 10.5 trillion yen by issuing ''reconstruction bonds.''
The emergency bonds would be serviced with proceeds from the envisaged tax hikes, possibly affecting both corporate and individual income taxes. Also envisaged are savings from spending cuts in other government programs.
The government is also considering raising around 200 billion yen in additional revenue by selling some state-owned assets, including the state shareholding in subway operator Tokyo Metro Co.
As for spending cuts, the government aims to shelve or scale down some key policies to save 2.4 trillion yen over a four-year period starting next April.
The overall composition of the reconstruction work financing plan is a response to calls from those who argue Japan should not easily issue new debt and should keep pursuing fiscal discipline even after the March 11 disaster.
Prime Minister Naoto Kan and Cabinet members met to add the final touches to the basic guidelines for relief programs, which the government aims to adopt on Friday. The draft guidelines mentioned the tax increase plan, but the Cabinet members did not finalize it, reconstruction minister Tatsuo Hirano told reporters after the meeting.
Cabinet ministers want to include the plan in the guidelines, but there is opposition from within the ruling Democratic Party of Japan by members opposed to increasing taxpayers' burdens.
''We will draw up the guidelines within July,'' Kan told the meeting. ''We have been left with limited time. But I want you to sufficiently discuss this issue in order to proceed with reconstruction as quickly as possible.''
The government has estimated the total cost at 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 compiled and passed two extra budgets for fiscal 2011 totaling 6 trillion yen to fund reconstruction work.
To help fund the overall reconstruction bill, the government is looking at raising 10.5 trillion yen by issuing ''reconstruction bonds.''
The emergency bonds would be serviced with proceeds from the envisaged tax hikes, possibly affecting both corporate and individual income taxes. Also envisaged are savings from spending cuts in other government programs.
The government is also considering raising around 200 billion yen in additional revenue by selling some state-owned assets, including the state shareholding in subway operator Tokyo Metro Co.
As for spending cuts, the government aims to shelve or scale down some key policies to save 2.4 trillion yen over a four-year period starting next April.
The overall composition of the reconstruction work financing plan is a response to calls from those who argue Japan should not easily issue new debt and should keep pursuing fiscal discipline even after the March 11 disaster.
