Govt, Ruling Bloc Mulling Tax Break on Wage Hikes for All Employees
Newsfrom JapanPolitics Lifestyle
Tokyo, Nov. 25 (Jiji Press)--The Japanese government and ruling camp are considering requiring companies to raise the salaries of all employees, including new and nonregular workers, to qualify for a tax break for wage-raising firms, it was learned Thursday.
The tax break requirement is expected to be included in tax system reform measures for fiscal 2022, the discussion for which is slated to begin in earnest from Friday, and in an outline of such measures to be released in early December.
The tax break system for companies raising employees' wages was established in fiscal 2013. Prime Minister Fumio Kishida plans to drastically review the system as part of his strategy for promoting wealth distribution.
The government and ruling bloc are considering the all-employee wage raise requirement after Kishida pledged to "raise the wages of every single person."
Under the current system, a company that conducts a certain level of wage hikes is eligible for a deduction of around 15 pct of the wages it pays from the final tax amount.
[Copyright The Jiji Press, Ltd.]