IMF urges gradual consumption tax hike in rapidly graying Japan

The International Monetary Fund on Monday called on Japan to further raise its consumption tax rate in stages to fund growing social security costs, while warning that its public debt may reach up to 2.5 times the size of its economy by 2030 without credible fiscal policy.The IMF proposal comes as Japan’s consumption tax rate was raised to 10 percent from 8 percent on Oct. 1, after twice being delayed. It was the first such tax hike in more than five years.But in a report issued following annual consultations with the Japanese government, the IMF said the country’s consumption tax would need t…

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