Japan Govt Adopts FY 2022 Tax Reform Package

Politics Lifestyle

Tokyo, Dec. 24 (Jiji Press)--The Japanese government on Friday adopted its fiscal 2022 tax reform package featuring bigger tax deductions for companies raising wages as part of Prime Minister Fumio Kishida's drive to realize a virtuous cycle of economic growth and wealth distribution.

The new tax system, if applied through one year, is expected to push down tax revenues at the national and local governments by 153.7 billion yen in total.

Bigger deductions will be offered for companies proactively raising wages and conducting employee training, with the maximum corporate tax deduction rate set to be raised to 30 pct from 20 pct for large companies and to 40 pct from 25 pct for smaller companies.

The measure is expected to decrease tax revenues by 164 billion yen.

In the meantime, annual tax revenues at the national and local governments are expected to be pushed up by 17 billion yen by reform measures including the phasing out of liquor tax reduction for "awamori" distilled spirits and other alcoholic products made in Okinawa Prefecture and the scaling down of aviation fuel tax-related preferential treatment.

[Copyright The Jiji Press, Ltd.]

Jiji Press