The Tax Commission kicked off its annual discussions Tuesday, with members applauding a plan by a Liberal Democratic Party panel to convert the 5 percent consumption tax into a double-digit welfare tax.
"The consumption tax and social welfare reforms are intricately linked, and we will watch closely to see what tax rate and structure will best suit any ongoing reforms," said commission Chairman Hiromitsu Ishi.
The LDP panel's proposal would specifically earmark consumption tax revenue to pay for social welfare costs.