Finance Minister Sadakazu Tanigaki said Thursday the 5 percent consumption tax should be raised to 8 percent by fiscal 2011.
"A hike of 1 to 2 points would be enough to cover the planned increase in the state's share of the costs of the basic national pension program in fiscal 2009, but a little more of an increase will be needed," Tanigaki, who announced his candidacy for the Liberal Democratic Party presidency last week, said on a radio program.
"I need to consider details, but I think a hike of about 3 points will be needed" to attain the government's goal of posting a surplus in the primary balance -- tax revenues minus outlays other than debt-servicing costs -- in fiscal 2011, he said.