FILE PHOTO: People run with Tokyo’s business district in the background, in Tokyo, Japan, April 7, 2021. Picture taken April 7, 2021. REUTERS/Kim Kyung-Hoon
November 17, 2021
TOKYO (Reuters) – Japan’s government and ruling party will consider debating next year revising the country’s capital gains tax as part of efforts to address income disparities, Jiji news agency reported.
The issue will be flagged as among key themes for debate in an outline for next fiscal year’s tax reform, which will be compiled by the government and the ruling party by year-end, Jiji said without identifying its sources.
Prime Minister Fumio Kishida, who has made wealth redistribution his key policy agenda, had previously flagged the chance of raising Japan’s taxes on capital gains and dividends.
But he walked the pledge back in October after drawing criticism for risking a stock market decline, saying the government would not change the taxes on investment income for the time being.
The tax on income from investments – imposed on capital gains on stock and property, dividends and interest payment on savings and Japanese government bonds – is uniformly set at 20%, well below tax rates on salaries of up to 45% in an effort to encourage investment.
The investment tax system also helps lower the overall burden for high-income earners, who tend to earn more through investments, an issue discussed in ruling party tax panel debates last year as lawmakers seek to strike a balance between fair taxation and potential impacts on stock markets.
($1 = 114.9100 yen)
(Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Chris Reese and Sandra Maler)
Source: One America News Network
