IMF suggests Japan seek higher sales tax rate

TOKYO - Japan should do its utmost to improve the country's fiscal health by at least raising its sales tax rate to "15 percent", local media cited the International Monetary Fund (IMF) as saying on Tuesday.

The target is higher than the 10 percent aim the government is currently advocating.

The IMF also said in a concluding statement that the Bank of Japan should further ease its monetary policy to boost economic growth by beating chronic deflation in the country.

The IMF retained its projections in April that Japan would grow 2.0 percent in 2012 and 1.7 percent in 2013 in terms of inflation-adjusted gross domestic product.