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Abe’s Sales Tax Plan Benefits Outweigh Negatives: Moody’s
October 05, 2017
The decision of Japan’s Prime Minister Shinzo Abe to raise the sales tax and spend some of the increased revenue on education and public welfare has more positives than negatives, an official from global ratings agency Moody’s said.
Christian de Guzman, who is a sovereign ratings vice president at Moody’s, said that as long as the government of Japan is working towards fiscal reform in the medium term, it’s timing of achieving a budget surplus isn’t that important. He added that Japan’s sovereign rating is stable as Abe’s reforms are boosting economic growth.
