The two ruling parties formally agreed Wednesday on fiscal 2005 tax changes that will raise income and residential taxes for the first time in six years.
The Liberal Democratic Party and New Komeito confirmed that the 1999 income and residential tax cuts will be halved in fiscal 2005, which would increase the taxpayer burden by as much as 145,000 yen a year.
Yuji Tsushima, chairman of the LDP tax panel, said the tax increase would bring in 170 billion yen in fiscal 2005.