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TOKYO， April 13 (Xinhua) -- Secretary-General of the Organization for Economic Cooperation and Development (OECD) Angel Gurria on Wednesday recommended that Japan go ahead with a planned tax hike in April next year unless there is a major economic shock.


Following a meeting with Japanese Prime Minister Shinzo Abe， the OECD chief said that based on Japan's substantial public debt， the highest in the industrialized world at more than double the size of its economy， and low sales tax rate in comparison with other developed countries， the sales tax here should be raised.


Gurria said he suggested to Abe and other senior officials here that Japan raise its consumption tax rate to 10 percent as per an already delayed schedule in April next year and， thereafter， continue to raise the rate annually by increments of around one percent until the rate reaches 15 percent or more， higher than the government's original planned hike.


The Mexican economist and diplomat said that this should be implemented unless there was some kind of global economic crisis， such as the 2008 global financial crisis triggered by the collapse of investment bank Lehman Brothers， or a sizable natural disaster.


""Japan could raise its consumption tax rate at least 15 percent in the future because 10 percent is not enough，"" Gurria told reporters after the meeting， adding that he believes it is an ""intergenerational issue about the future generations when you have debt to GDP of 230 percent.""


Gurria also noted that other OECD member states' average VAT stands at 20 percent and that there was， based on this， room for Japan to up its levy beyond 10 percent to achieve fiscal sustainability， but in a manner that avoids disrupting the nation's consumption patterns.


Abe has recently been gauging the opinions of senior， leading economists regarding the tax hike issue， and ahead of a Group of Seven summit scheduled to be held in Japan in May. The Japanese leader said Wednesday that he wants to discuss with other global leaders at the summit how Japan can contribute toward robust global economic growth and sustainability.


The summit， to be held in Mie Prefecture， central Japan， from May 26 to 27， will aim in part to coordinate global policy on economic growth and traverse ways in which financial markets can be stabilized following recent volatility.


But Gurria's suggestions run contrary to other renown economists， including Paul Krugman who won the Nobel Memo. Cheap Jerseys Cheap Jerseys China Cheap Jerseys Cheap Jerseys Wholesale Cheap Custom Jerseys Wholesale Authentic Soccer Jerseys Wholesale NFL Football Jerseys Cheap Jerseys China Wholesale MLB Baseball Jerseys Cheap Jerseys