JAPAN TO DOUBLE CONSUMPTION TAX?
Japanese government is said to have decided to tackle the problem of a fast aging society.The problem echoes the topic of this year's World Health Day, aging and health.World Health statistics show that 30 percent of the Japanese population are over 60 and the ratio is rising.
With decreasing birth rates and a shrinking workforce to support the ever rising pensioner, Japan faces a serious demographic crisis. Many Japanese people worry if they can receive enough pension to support their life after retirement.
To tackle the issue, Japanese Prime Minister Yoshihiko Noda has proposed a consumption tax, which can be used to improve the country's welfare system.
"The consumption tax is the most suitable tax for propping up Japan's social security system. Unlike corporate tax and income tax, it is very little affected by ups and downs of the economy or demographic change," he said.
Analysts said that the aging problem is very urgent as social welfare expenditures could reach over 1.8 trillion US dollars by 2025, while the aged population could reach 40 percent.
"I think the most effective measure the government could take is securing jobs for young people. No use doing anything else if we do not have a strong work force to pay taxes to secure government revenue."World Health Day, under the sponsorship of the World Health Organization (WHO), is celebrated on April 7 annually.
This year's theme, "Good health adds life to years", focuses on how good health throughout life can help older people lead full and productive lives and be a resource for their families and communities.
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