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ABE SEEKS TO DELAY TAX HIKE DEBATE, TANIGAKI TANGLES WITH ISSUE.

AsiaPulse News

| August 01, 2006 | COPYRIGHT 2006 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

TOKYO, Aug 1 Asia Pulse - It has become evident that Liberal Democratic Party lawmakers jockeying for the prime minister post are taking different paths toward a possible increase in the consumption tax.

Chief Cabinet Secretary Shinzo Abe, the front-runner in September's LDP presidential election, told a news conference Monday that it would be premature to reveal a target for the size and timing of a tax hike.

By contrast, Finance Minister Sadakazu Tanigaki, who is far behind Abe in the polls, delved into the issue at a news conference Thursday, when he announced his candidacy in the race. He said the consumption tax should be raised to at least 10% by the mid-2010s. He later made his proposal more concrete by referring to plans to turn the consumption tax into a special-purpose tax dedicated to social security programs.

But Abe stressed ...

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