— Japan Azumi: Further Sales Tax Hike For Balancing FY20 Budget
TOKYO (MNI) – Japanese Finance Minister Jun Azumi said on Thursday
that discussion on a sales tax hike beyond 10% will be “inevitable” to
hit the government’s target of achieving a surplus in the primary
balance in fiscal 2020.
In order to secure stable sources of funding for public pensions
and health care, the government plans to raise the 5% consumption tax
rate to 8% in April 2014 and to 10% in October 2015.
In tax reform bills to be sent to parliament by the end of the
week, the government has dropped an initial idea of calling for
discussion on a further hike beyond 10%, after meeting stiff opposition
from within the ruling coalition party.
Azumi told reporters that this does not mean the government has
given up achieving a primary budget surplus in nine years from now.
The government has set a target of turning the primary fiscal
deficit — the budget deficit excluding both debt-servicing costs from
spending and debt issues from revenue — to a surplus in the fiscal year
ending on March 31, 2021.
tokyo@marketnews.com
** MNI Tokyo Newsroom: 81-3-5403-4833 **
[TOPICS: M$A$$$,M$J$$$,MGJ$$$,MT$$$$]
