IMF urges Japan to ensure tax hike goes smoothly (1ﾚｽ)
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1: 2018/10/05(Fri)03:24 AAS
外部ﾘﾝｸ[html]:english.kyodonews.net

International Monetary Fund chief Christine Lagarde on Thursday urged Japan to make sure that an increase scheduled for next year in the nationwide consumption tax does not hurt the country's economic growth.

"We believe that the higher consumption tax will help fund growing health and pension expenses, and support fiscal consolidation," Lagarde told a press conference in Tokyo following an annual consultation with the Japanese government.

"However, we also recommend that the 2019 consumption tax increase be accompanied by carefully designed mitigating measures to protect near-term reflation and growth momentum. We believe that the fiscal stance should certainly remain neutral at least for the next two years," she said.

Economists fear the planned tax hike to 10 percent from the current 8 percent in October next year will trigger a wild swing in private demand that will put the brakes on the world's third-largest economy, as the previous hike in 2014 did.
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