TOKYO, Jan. 25 (UPI) -- Japan's economic minister said Tuesday the government would consider raising the consumption tax to meet growing budget needs.
At a press briefing, Heizo Takenaka said raising the sales tax might be one means of reducing at least part of the ever-growing public debt.
"Concerning the fiscal year 2007 onwards, there are many possibilities to discuss, whether it's necessary to raise the consumption tax or whether we can reduce our budget," Takenaka said.
On the first day of the current parliamentary session Monday, Prime Minister Junichiro Koizumi said that the government should consider using the consumption tax to help finance pensions at a time when Japan's elderly population continues to grow, while the birth rate continues to decline.
