- Analytics
- News and Tools
- Market News
- Japan should rely on sales tax to generate extra revenue - OECD
Japan should rely on sales tax to generate extra revenue - OECD
Japan should rely primarily on raising the sales tax to generate extra revenue, and may need to raise it to as high as 26% to achieve a large primary surplus, the Organisation for Economic Cooperation and Development (OECD) said.
The national sales tax is scheduled to rise to 10% in October, from 8% now to help pay for rising healthcare costs.
"The Bank of Japan should remain focused on achieving its 2% inflation target, but there are signs its purchases of exchange-traded funds (ETFs) are distorting the stock market. Policymakers need to curb healthcare spending and raise revenue to pay down debt, but this could decrease the chance of fostering sustainable inflation," the OECD said in an economic survey of Japan.
"Japan's spending on welfare and healthcare has doubled to 22% of GDP from 11% of GDP over the past 25 years, which is why increasing revenue is an urgent task, The country's outstanding government debt is more than twice the size of its $5 trillion economy, another reason Japan needs to pursue fiscal discipline." the OECD said.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
