On 1 January, it was learned that the Japanese Government and the ruling party are considering increasing corporate taxation in order to secure funds for increased defence expenditure, based on the same ‘additional tax method’ as the reconstruction tax increase following the 2011 East Japan Earthquake. Rather than raising the corporate tax rate itself, a certain percentage will be added to the amount of corporate tax calculated for each company and collected to clarify the purpose of using the tax for defence expenditure. A number of sources have revealed this.
The government intends to reach a conclusion at the end of the year on increasing the relevant budget and securing financial resources to strengthen defence capabilities, in accordance with Prime Minister Fumio Kishida’s instructions. The Liberal Democratic Party will carefully decide whether or not to raise the tax, as there is widespread opposition to the tax increase within the LDP. According to sources in the ruling party, even if the government decides to raise the tax, it is highly likely that it will be implemented after FY2024, taking into account the economic climate.
Source: https://news.yahoo.co.jp/articles/517583af1dcf8d7e4bb5ba8bf0127b51f83ce167
Comments section: https://news.yahoo.co.jp/articles/517583af1dcf8d7e4bb5ba8bf0127b51f83ce167/comments
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