Japan DPJ tax panel: agrees to raise sales tax to 10 pct by mid-decade

TOKYO, June 29 Wed Jun 29, 2011 6:44am EDT

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TOKYO, June 29 (Reuters) - A panel of ruling Democratic Party lawmakers on Wednesday agreed to raise Japan's sales tax to around 10 percent by the middle of the decade to fund rising social security costs.

Most members of the panel also said improvement in nominal and real gross domestic product should be a precondition for the tax hike.

The proposal is less specific than a government plan to double the 5 percent sales tax by 2015.

(Reporting by Stanley White; Editing by Joseph Radford)

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