The ruling coalition finalized an annual tax reform package Wednesday that vaguely advocates a consumption tax hike in fiscal 2007 as a means of saving the ailing public pension system.
The Liberal Democratic Party and New Komeito also called for steps to raise more tax revenue for the nation's debt-ridden coffers, ranging from tougher taxation for wealthy elderly people to a hike in one portion of the local income tax.
The coalition's biggest message to the public is that "the time has finally come to pay the bills," according to Yasunari Ueno, chief market economist at Mizuho Securities Co. "That means the country's budget deficits are that bad."
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