DPJ considers higher consumption tax rate

The Democratic Party of Japan seeks to increase the consumption tax rate to maintain the pension system in the future. DPJ leader Kan Naoto hinted at this on October 2 when he addressed the Japanese Trade Union Confederation (Rengo) Convention in Tokyo.

Kan stated that the DPJ would include this scheme in its "administration pledges" (election manifesto).

Concerning the timing of the tax increase, Kan said, "Discussions toward the higher tax rate should begin after Japan's economic growth rate becomes stable at around two percent." (end)