Government tax commission eyes consumption tax rate increase

The Tax Commission, an advisory panel to the prime minister, has started discussion on a "drastic reform of the tax system," which may include an increase in the consumption tax rate.

The tax panel held its general meeting on January 17 at the prime minister's official residence and decided to submit a report to the prime minister next fall, which will propose a revised taxation system to be put into effect from April 2003.

Finance Minister Shiokawa Masajuro said that direct taxes should be decreased and indirect ones be increased, indicating that the consumption tax rate should be raised.
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