Raising the Consumption Tax in Japan: Why, When, How?
( IMF Staff Discussion Notes )
Publication series ： IMF Staff Discussion Notes
Author： Mr. Kenneth Kang Mr. Michael Keen Mahmood Pradhan Ruud A. de Mooij
Publisher： INTERNATIONAL MONETARY FUND
Publication year： 2011
E-ISBN: 9781589069602
P-ISBN(Paperback): 9781463902889
Subject： F0 Economics;F8 Finances
Language： ENG
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Description
The note will make the case for a substantial increase in the VAT in Japan as a core measure of fiscal consolidation, assess its macroeconomic impact (on real activity and inflationary expectations), consider key elements in its design and implementation (dealing with the distributional consequences; big-bang versus preannounced step increases); the importance of retaining a single rate and adopting compensating spending measures as needed) and a range of related issues (such as the pros and (likely even larger) cons of earmarking).