Japan Ruling Camp Adopts FY 2023 Tax Reform Package

Politics Lifestyle

Tokyo, Dec. 16 (Jiji Press)--Japan's ruling coalition on Friday adopted its fiscal 2023 tax reform package, which includes a plan to raise corporate, personal income and tobacco taxes to finance an increase in defense spending.

The taxes will be raised "at an appropriate time sometime in or after 2024," the ruling bloc said.

Under the package, the country will add a surtax of 4.0-4.5 pct to the corporate tax, while reducing the burden on small companies from the measure.

A surtax of 1 pct will be added onto the income tax, and the rate of the special income tax designed to finance reconstruction after the March 2011 earthquake and tsunami will be lowered by 1 percentage point from 2.1 pct.

The special income tax will remain in place beyond the current expiration of 2037 to keep the amount of funding for reconstruction unchanged.

[Copyright The Jiji Press, Ltd.]

Jiji Press