The Japanese government and the ruling Democratic Party have reached an agreement on a draft plan to raise the consumption tax.

The decision was made on Friday at a meeting of a task force on social services. The increase is intended to support ballooning social security costs.

The plan calls for a 2-stage rise in the consumption tax, to 8 percent from the current 5 percent in April 2014, and to 10 percent in October 2015.

Prime Minister Yoshihiko Noda said he will seek public acceptance of the plan by accelerating efforts to curb spending. This would include reducing the number of Diet seats and cutting public servants' salaries.

Noda added that a unified reform of taxes and social security is an issue that no administration can afford to ignore. He said he will ask the opposition parties to cooperate.

The government aims to submit the related bills on the tax increase before the end of March.

Source: http://www3.nhk.or.jp/daily/english/20120106_19.html

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