 Prime Minister Koizumi, DPJ leader concur on a consumption tax increase The ordinary Diet session began discussing substantive issues with representatives of the ruling Liberal Democratic Party and the opposition Democratic Party taking the floor to question the prime minister's policy speech in the House of Representatives plenary session on January 24. Prime Minister Koizumi Jun'ichiro hinted at the possibility of a consumption tax increase in addition to the plan that will force people to shoulder an extra 7-trillion yen burden in the next two years, saying, "The consumption tax can be considered as a financial resource for the pension system." This was in response to Democratic Party Leader Okada Katsuya's argument that the use of consumption tax revenues will be inevitable if the rate of the pension premiums is to be held below 15 percent. The consumption tax revenues may also be used for welfare services other than the pension system, Koizumi added. (end) |