Japan will have to raise VAT to pay for debts

Note: This section contains information in English only.
Source: Bloomberg
© Scanpix/Reuters
Japan's government will have to increase the VAT tax rate substantially by 2020 Olympic Games, as the country's external debt exceeds 200% of GDP, while the aging population will ask for more welfare costs. Analysts estimate that VAT surge to 20% will raise enough money to pay for bonds that Japan will issue before the Olympics to cover costs, while the yields can stay more or less stable.
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