Japan PM Abe’s Adviser: Japan must hike sales tax, draw in more foreign workers

Takeshi Niinami, Chief Executive Officer of major brewer Suntory Holdings Ltd and an economic adviser to Prime Minister Shinzo Abe, spoke to Reuters on Tuesday on the sidelines of the World Economic Forum (WEF) meeting in Davos.

Key Quotes (courtesy Reuters):

“I don’t see a huge negative impact” from raising the tax rate, as the government is preparing spending measures to mitigate pain to the economy from the higher levy.

“We have to raise the consumption tax to support the social welfare system. If the current unwise spending goes on, it cannot be sustained.”

“I don’t think we will be able to (hit the target). We’re not in deflation ... but there is still inertia. There’s still a deflationary mindset.” 

“Bringing people in and letting them work isn’t easy ... Now is the time to think about what to do.”

“I’m hopeful we will change the law so that we can bring in foreign workers with their spouses and with their families.”

“Maybe two, three years from now, foreign workers can bring in their families.”