OECD Secretary-General Mathias Cormann: Increasing consumption tax in small increments efficient way to raise revenue

• OECD Secretary-General Mathias Cormann discusses recommendations for Japan’s economic and energy policies
• Japan’s consumption tax is currently 10 percent, below the OECD average
• Incremental increases in consumption tax could improve fiscal resilience in public finances
• Public debt in Japan is at 245 percent of GDP, with interest rates likely to rise
• Increasing revenue through stronger growth, higher taxation, or reducing expenditures are ways to improve the fiscal position
• Increasing efficiency of expenditures in the Japanese budget could help deliver better outcomes at a lower cost
• Increasing the consumption tax in small increments is seen as an efficient way to raise additional revenue

Source: nippon.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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