OECD: Japan should rely on sales tax to generate additional revenue

TOKYO, April 15 (Reuters) – Japan should mainly rely on an increase in sales tax to generate additional revenue. It may be necessary to raise this tax to 26% to generate a large primary surplus, the Organization for Economic Co-operation and Development (OECD) said on Monday.

The national sales tax is expected to increase from 10% in October to 10% in October.

The Bank of Japan should remain focused on achieving its 2% inflation target, but it would appear that its purchases of exchange-traded funds distort the stock market, said the OECD in an economic study conducted in Japan. (Report by Stanley White edited by Chang-Ran Kim)