Yosano, said Japan Quake reconstruction "Must" be backed up by Taxes

April 20, 2011, 4: 21 am EDT by Keiko Ujikane and Takashi Hirokawa

April 20 (Bloomberg)--the Japanese economy and fiscal policy Kaoru Yosano Minister said taxes must be part of the funding of the efforts of reconstruction of the earthquake, as polls show growing support for an increase in the levies to help rebuild from March 11 record temblor.

"Of course our borrowing must be supported by taxes," Yosano, 72, said in an interview in Tokyo today. Sales tax "is a possibility, we could explain to the people, the Government made no progress in the discussions."Policy makers are faced with the means to pay for an earthquake and the tsunami which it says could expand to as much as 25 billion yen ($302 billion), damage without exacerbating a burden of debt which is nearly 200% of the domestic product gross. Per cent sixty-nine people said that they would be favourable to an increase in royalties to pay for reconstruction efforts, according to a survey by the Nikkei newspaper published this week.

-Editors: Lily Nonomiya, John Brinsley

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To contact the reporters on this story: Keiko Ujikane in Tokyo at the kujikane@bloomberg.net. Takashi Hirokawa in Tokyo at the thirokawa@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst in ppanckhurst@bloomberg.net; Peter Hirschberg to phirschberg@bloomberg.net

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