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Tobacco tax hike shelved
The government and the ruling parties decided Thursday to shelve a plan to raise the tobacco tax, one of the key elements of tax reform for fiscal 2009, according to government sources.
The ruling coalition is to finalize the outline of its tax system reforms for fiscal 2009 on Friday, the sources said.
Following the decision, Prime Minister Taro Aso ordered Liberal Democratic Party Policy Research Council Chairman Kosuke Hori to find an alternative source of revenue to the tobacco tax hike.
The prime minister told Hori that the government's goal of curbing natural increases in social security …