A hike in the consumption tax from the current 5 percent must be considered to finance the swelling social security costs stemming from the rapidly aging population, the governmental Tax Commission said in a proposal released Tuesday.
Though the proposal avoids touching on the timing or scale of the hike, it is clear about the need: "As for social security outlays, (the government) should not pass on its burden to the next generations. (It) should make its stance clear and broadly discuss raising the consumption tax rate and covering the costs as one of the options."
The proposal, adopted at the panel's meeting Tuesday, also makes a case for the existence of the consumption tax, noting that it is a burden shared by every age group.