Article of Prof. Sakakibara in Trouw (Dutch News Paper)
DUJAT Advisory Board member Prof. Eisuke Sakakibara (photo) states in an interview with Dutch daily Trouw, published on 10 August that Japan’s VAT has to increase substantially. “Japan’s debt grows with 7% per year and is now equal to 240 of Japan’s GDP. If this continues the public debt is in 5 years 300% of GDP, that is unsustainable. The government debt is now financed by the savings of ordinary Japanese”. And, according to Prof. Sakakibara government expenses including pensions and health care costs, can’t be cut very much. So in his opinion only an increase of VAT will work. “We should increase the VAT each year with 0.5 or 1% until the VAT is 20% as it is in most countries if the EU”.