The scheduled consumption tax hike to 10 percent this fall is "essential" to ensure Japan's fiscal sustainability, a top Organisation for Economic Co-operation and Development official said Monday.
At a news conference unveiling its biennial Economic Surveys report on Japan, OECD Secretary-General Angel Gurria urged the Japanese government to adhere to a clear plan to stabilize its budget.
Gross government debt reached 226 percent of GDP last year, the highest in the OECD and far exceeding that of Greece and the United States. Prime Minister Shinzo Abe plans to go ahead with the oft-delayed tax hike to 10 percent from the current 8 percent in October, completing the Diet's decision to double the rate in two stages from 5 percent.