That tag confirms the common name used in that language is the same as the “local” name. The consumer should decide without assumption on what kind of the name it is, and supply the phonetic name separately. On the OSM side, separate tag for transliteration (or transcription?) and “translation” of the literal meaning (instead of localization) would be needed.
I don’t understand why you mentioned phonetics in other language. This is an issue for the “local” romanization

name:XX-Latin=

, but not the target

name:xx=

.