TOKYO, Sept 22 (AFP): Japan should raise sales taxes again next year despite wobbles in the economy caused by the first rise, and the central bank should cushion the blow with more easy money, the OECD said Monday.
The Bank of Japan must do more "beyond 2015" to support the world's number three economy, said Rintaro Tamaki, deputy secretary general of the Organisation for Economic Co-operation and Development (OECD).
"Japan's public debt has surged in the past few years, in a way that makes it comparable to Greece's," Tamaki told reporters in Tokyo.
"Japan should not only implement the planned sales tax hike in October 2015, but also show its people what will come next, explaining the schedule and direction of further tax hikes" to allay fears about the sustainability of the country's finances, he said.
OECD backs Japan tax hike, more easy money
FE Team | Published: September 23, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
Share if you like