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Japan Must Overhaul Tax to Avoid Bond Rout, Bank Lobby Says

Japan must quickly overhaul the tax system to prevent government borrowing costs from spiraling in the next decade, the new head of the nation’s bank lobby said.

“The risk of a tumble in government bond prices would increase if taxation and social security reform are left unsolved for years,” said Yasuhiro Sato, whose tenure as chairman of the Japanese Bankers Association began yesterday. “The country’s financial assets are dwindling with the aging population dipping into savings.”