International Monetary Fund director Christine Lagarde has called on Japan to push forward its sales tax to 10 percent as planned next year, describing it as a vital step in financial reform, a Japanese Finance Ministry official said today.
Lagarde made the remarks during her meeting with Taro Aso, Japan's finance minister, and she visited Japan for meetings with the finance minister and other Japanese policymakers to hold IMF consultations on Article 4 on economic policy.
Lagarde was quoted as saying that attention should be given to the expected impact of raising taxes on the economy, given that the recent increase to 8% in 2014 led to a downturn. Aso told Lagarde that Japan will continue to raise taxes as planned in October 2019.
