EconomySuntory President: Consumption Tax to 10%, need to increase foreign workers

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President Takeshi Niinami of Suntory Holdings, who is a member of the Economic and Fiscal Consultative Council, emphasized the necessity of raising the consumption tax rate to 10% this year and an increased acceptance of foreign workers to countermeasure the aging of the population and serious human labor shortage. 

Mr. Niinami responded in a Reuters’ interview at the site of the World Economic Forum (WEF) Annual Meeting (Davos Conference) held in Davos, eastern Switzerland. 

Although trade friction and overseas uncertainty factors are driving business perspectives downward, there is no pessimistic view when it comes to the prospect of domestic growth and even if with an increase in taxes, there are economic measures that can be taken to prevent any major negative impact from happening.

On the other hand, regarding the commitment of the Bank of Japan’s inflation target of 2%, he said that it is going to be a difficult achievement as “The economy is not deflated, but the deflationary psychology is deep-rooted”.

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