 New LDP-Komei-DPJ panel aims at consumption tax increase: JCP Shii The Liberal Democratic, Komei, and Democratic parties on March 9 held at a meeting of secretary general and Diet policy commission chairs and agreed to establish a new extra-parliamentary panel to review the entire social welfare system, with a consumption tax increase as a prerequisite. The three parties last May agreed to adversely revise the pension law to increase premiums and cut benefits. They also agreed to make a comprehensive review of the social welfare system by March 2007. Japanese Communist Party Chair Shii Kazuo on March 9 warned that the new three-party agreement will pave the way for a drastic increase in the consumption tax rate. Such a way of handling tax and social welfare issues by using the tight revenue sources of pensions as a pretext cannot be tolerated, Shii said. Public criticism must be concentrated on their behind-the-curtain moves, a matter that should be discussed fairly in the parliament, Shii emphasized. (end) |