Kishida Orders Considering 1-T.-Yen Tax Hikes from FY 2027

Tokyo, Dec. 8 (Jiji Press)--Japanese Prime Minister Fumio Kishida on Thursday instructed the ruling parties to consider tax hikes to secure some 1 trillion yen to partially cover higher defense spending from fiscal 2027.

"To maintain our country's defense capabilities in the future, it is essential to take supportive fiscal measures," Kishida said at a meeting between the government and the ruling parties.

For defense spending from fiscal 2027, the prime minister said that 4 trillion yen will be additionally needed every year, adding that the government is planning to secure 3 trillion yen through spending reforms, as well as the use of surpluses at the government's special accounts and nontax revenues.

For the remaining 1 trillion yen, Kishida said, "We have to ask for cooperation from the people on taxes."

Still, the prime minister indicated a plan to skip an income tax hike, considering its possible impact on households.

[Copyright The Jiji Press, Ltd.]