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Tuesday, 19 April 2011 - Japan eyes sales tax rise to pay for post-quake rebuild |
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    Edition: U.S. Article Comments (0) Slideshow Full Focus Editor's choice A selection of our top photos from the past 48 hours.   Full Article  Follow Reuters Facebook Twitter RSS YouTube Read Tennessee investigator makes plea for help in Bobo case 18 Apr 2011 Kanye West saves day, reputation at Coachella 18 Apr 2011 Japan ministers confident in Treasuries after S&P move 18 Apr 2011 UPDATE 3-White House, Congress under pressure from S&P move 18 Apr 2011 Apple sues Samsung over Galaxy products 18 Apr 2011 Discussed 88 Palin returns with feisty, anti-establishment speech 83 Obama to lay out deficit plan with focus on tax, spending 74 UPDATE 1-Geithner says Congress will pass debt limit increase Watched South Korean "super gun" packs hi-tech killing power Mon, Feb 14 2011 Cupless bra combats cleavage crinkle Fri, Apr 15 2011 VW unveils new sporty Beetle Mon, Apr 18 2011 Japan "eyes sales tax rise" to pay for post-quake rebuild Tweet Share this By Linda Sieg and Kazunori Takada TOKYO (Reuters) - Japanese consumers may have to help foot the reconstruction bill after last month's earthquake and tsunami caused $300 billion of damage, further burdening a hugely indebted economy, a newspaper... Email Print Factbox Japan's disaster in figures Mon, Apr 18 2011 Related News Analysis: Japan nuclear crisis could drag on long past timetable Mon, Apr 18 2011 Q+A: Japan's nuclear owner aims for shutdown of reactors Mon, Apr 18 2011 Under shadow of Japan, $1 billion sought for Chernobyl 3:24am EDT Analysis & Opinion The politics of S&P’s U.S. debt warning Geithner vs. Ryan on S&P’s debt warning Related Topics World » Japan » Natural Disasters » Stocks     1 / 20 A remote-controlled robot called ''Packbot,'' which has capabilities including manoeuvring through buildings, taking images, and measuring radiation levels, is seen getting its picture taken by another Packbot in Tokyo Electric Power (TEPCO) Co.'s crippled Fukushima Daiichi Nuclear Power Plant No.1 reactor building in Fukushima, northern Japan, April 18, 2011 in this handout photo released by TEPCO on April 19, 2011. Credit: Reuters/Tokyo Electric Power Co. THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. IT IS DISTRIBUTED, EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. MANDATORY CREDIT By Linda Sieg and Kazunori Takada TOKYO | Tue Apr 19, 2011 3:24am EDT TOKYO (Reuters) - Japanese consumers may have to help foot the reconstruction bill after last month's earthquake and tsunami caused $300 billion of damage, further burdening a hugely indebted economy, a newspaper said on Tuesday. The government is considering raising the sales tax by 3 percentage points to 8 percent when the new fiscal year starts next April, the Yomiuri newspaper said on Tuesday. It would be the first increase since 1997, though Japanese politicians have frequently debated such a move as a way of digging Japan out of its massive debt before the earthquake struck. "It was clear even before this disaster and the need to secure funds for reconstruction that to ensure a sustainable fiscal situation, some sort of reform of spending and revenues was necessary," said Internal Affairs Minister Yoshiro Katayama. "The debate over the fiscal situation is not something that began with this disaster." The government hopes to avoid issuing new bonds to fund an initial emergency budget, expected to be worth about 4 trillion yen ($48 billion), due to be compiled this month. But bond issuance is likely for subsequent extra budgets and markets are worried that post-quake rebuilding may hamper Japan's efforts to rein in its debt, running at twice the size of the $5 trillion economy. Japan must convey the message that it will continue to stick to fiscal discipline, Finance Minister Yoshihiko Noda said on Tuesday. The Yomiuri said the government had decided against raising income and corporate taxes. "I am aware that the Democratic Party is considering various methods, including this (tax rise). But the government is not considering any specific funding methods at this stage," top government spokesman Yukio Edano told a news conference. Katsuya Okada, secretary-general of the ruling Democratic Party (DPJ), said on Sunday Japan must raise taxes to repay new government bonds that will be needed to pay for reconstruction. A poll by the Nikkei business daily showed on Monday about 70 percent of Japanese voters would approve of a tax hike to help with the rebuilding, but they want unpopular Prime Minister Naoto Kan to be replaced. "No matter who is in charge, they will need to raise taxes and issue more bonds, but in two stages," said Yasunori Sone, a Keio University political science professor, suggesting a tax rise will come later than bond issuance. IMPACT OF NUCLEAR CRISIS As well as trying to deal with the consequences of quake and tsunami which killed at least 13,000 and left tens of thousands homeless, Japan is struggling to control the Fukushima Daiichi nuclear power plant that began leaking radiation when it was damaged by the natural disasters. 1 2 Next World Japan Natural Disasters Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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