Japan gov't panel proposes tax hikes for reconstruction

By REUTERS
June 25, 2011 08:36

 
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TOKYO - Japan should raise taxes to fund rebuilding after the March 11 earthquake and tsunami, the government's advisory panel said on Saturday, but it is unclear how binding its recommendations will be given the political impasse over the fate of Prime Minister Naoto Kan.

The panel's proposal provides the basis for spending on reconstruction of Japan's northeast devastated by the magnitude 9.0 quake and a deadly tsunami, which is widely expected to top 10 trillion yen ($124 billion).

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