Major tax hike expected as Japan rebuilds

JAPANESE consumers may have to help foot the reconstruction bill after last month’s earthquake and tsunami caused $300 billion (€210bn) of damage, further burdening the hugely indebted economy.

The government is considering raising tax by 3% to 8% when the new fiscal year starts next April

It would be the first increase since 1997, though a sales tax hike had been the subject of fierce political debate, even before the earthquake struck, as one way for Japan to get itself out of massive debts.