- OECD Secretary-General Mathias Cormann criticized Japan’s plan to temporarily cut the consumption tax on food to zero, calling it costly and not well-targeted.
- Cormann argued the measure would erode Japan’s revenue base and disproportionately benefit higher-income households.
- He recommended targeted fiscal support for low-income households instead, to better protect those in need and maintain fiscal sustainability.
- Cormann noted Japan’s 10% consumption tax is low compared to the OECD average and suggested a gradual increase.
- The OECD is working with Japan on energy security amid rising crude oil prices.
Source: japantimes.co.jp
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.
