Japan eyes higher corporate, tobacco taxes to fund defense spending

Japan is considering raising corporate and tobacco taxes in stages, as well as tapping revenue from a temporary tax measure for its recovery from a major earthquake, to cover a planned increase in defense spending, according to people with knowledge of the matter.

The ruling coalition of the Liberal Democratic Party and the Komeito party is exploring stable funding sources for a combined 43 trillion yen ($315 billion) in defense spending over the next five years from April. Prime Minister Fumio Kishida has said some 1 trillion yen annually will have to be secured though tax increases after fis...