OECD secretary general Ángel Gurría shows a GDP growth chart for Japan (red) and the OECD (green) with Japanese Prime Minister Shinzo Abe during a courtesy call at the prime minister’s official residence in Tokyo on April 15. The Organisation for Economic Co-operation and Development is urging Japan to triple its sales tax, to 26 per cent, to achieve a large primary surplus. Photo: AP
Dan Steinbock
Opinion

Opinion

The View by Dan Steinbock

Japan faces an urgent economic problem, but a sales tax hike is not the solution

  • Tokyo plans to proceed with a sales tax increase in October, despite signs of economic weakness and signals of an end to monetary easing. But, instead of penalising the middle class, it should be solving Japan’s structural problems

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OECD secretary general Ángel Gurría shows a GDP growth chart for Japan (red) and the OECD (green) with Japanese Prime Minister Shinzo Abe during a courtesy call at the prime minister’s official residence in Tokyo on April 15. The Organisation for Economic Co-operation and Development is urging Japan to triple its sales tax, to 26 per cent, to achieve a large primary surplus. Photo: AP
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