ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Economy

IMF urges graying Japan to raise consumption tax to 15%

Fund calls for inflation target flexibility as chief backs Tokyo's stimulus

As Japan's social security obligations grow, the IMF sees the need for further increases in the consumption tax.   © Reuters

TOKYO -- Japan needs to raise its consumption tax further to fund growing social security costs, the International Monetary Fund recommended Monday, as its chief endorsed stimulus steps the country is weighing amid the global economic slowdown.

The tax "would need to increase gradually" to 15% by 2030 and 20% by 2050, the IMF said in a report. It offered a more specific timeline than a 2018 report that called for a gradual increase to 15%.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more