BofAML's Devalier Says Japan Sales Tax Hike a Risky Move

The transcript discusses the repeated delays of a planned consumption tax hike in Japan, scheduled for October 2019. It explores the motivations behind the tax policy, including funding for education and child care, and the potential economic impacts, such as reduced consumption and deflation. The discussion also highlights the political and economic risks associated with the tax hike, noting that a significant portion of the public favors postponement. The tax issue has become a focal point in political strategy, offering the opposition a platform to campaign against it.

What are the potential implications of delaying the tax hike mentioned in the text?

How does the consumption tax relate to the fiscal stimulus program discussed?

What motivations might Prime Minister Abiy have for emphasizing education and child care support?

What risks are associated with the commitment to the consumption tax from both political and economic perspectives?

How might the opposition capitalize on the consumption tax issue in the upcoming election?