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IMF Urges Japan to Avoid Lowering Consumption Tax
The IMF warns cutting Japan's 10% consumption tax risks fiscal health, urging targeted support and continued gradual interest rate hikes toward neutral by 2027.
8 Articles
8 Articles
IMF urges Japan to avoid lowering consumption tax
Japan should avoid lowering the consumption tax, the International Monetary Fund said Tuesday, cautioning that such an "untargeted measure" to deal with the rising cost of living could further deteriorate the country's fiscal health.
IMF Urges Japan to Avoid Fanning Fiscal Risks With Sales Tax Cut
The International Monetary Fund warned Japan against cutting its sales tax when borrowing costs on public debt are set to double, comments that come as Prime Minister Sanae Takaichi prepares to speed up debate on a potential suspension of the tax on food.
[Kyodo News, Washington] The International Monetary Fund (IMF) issued a statement on the 17th after reviewing the Japanese economy, stating that a consumption tax cut should be avoided as it could increase fiscal risks. It also called for measures to combat rising prices to be designed as a temporary measure, limited to vulnerable households struggling with rising living costs.
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