FOCUS: Kishida Stumbles over Financial Income Tax
Newsfrom JapanPolitics Lifestyle
Tokyo, Oct. 12 (Jiji Press)--Japanese Prime Minister Fumio Kishida shelved for the time being a plan to raise tax on financial incomes in the face of a blowback from investors and businesses, a stumble he faced only days after taking office.
Kishida hammered out the plan as part of campaigning for the leadership election of the ruling Liberal Democratic Party, pledging to correct economic disparities among people by imposing heavier tax burdens on the wealthy.
The maximum income tax rate currently stands at 55 pct, while the tax rate for income from financial transactions, including the sale of stocks, is flat at 20 pct.
Under the system, the tax burden peaks for people who earn 50 million yen to 100 million yen and drops for those who earn more through financial transactions.
Kishida had said that strengthening financial income tax is "one of the options" to address the situation.
[Copyright The Jiji Press, Ltd.]