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, including corporate, income and tobacco tax hikes to finance the defense spending increase planned under a new national security policy.

But the ruling bloc was unclear as to when to implement the hikes, only saying that the three taxes will be raised "at an appropriate time in or after 2024."

Japan will begin expanding its defense capabilities based on revised three key national defense documents, announced also Friday, without fully resolving the issue of securing stable funding sources.

Prime Minister Fumio Kishida had requested that it be decided by year-end what taxes should be raised by how much and at what points in time to cover the planned defense spending boost.

The tax package stipulates that the three taxes will be raised over years toward fiscal 2027 to secure over 1 trillion yen in fresh annual revenues in the year.

[Copyright The Jiji Press, Ltd.]

Jiji Press