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作成日: 2022/12/16 07:26

更新日: 2025/12/09 10:21

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The tax research panel of Japan&#039;s main governing Liberal Democratic Party has agreed on a draft plan to raise corporate, income and tobacco taxes to fund a bigger national defense budget.
                
The panel has also decided to leave the next move up to its chair Miyazawa Yoichi.
                
About 120 LDP members met on Thursday to debate how to increase taxes to cover a defense budget shortfall of more than 1 trillion yen, or about 7.3 billion dollars.
                
The draft calls for levying an additional tax of 4 to 4.5 percent across the board on corporate taxes.
                
But 24 million yen&#039;s worth of income would be deducted from taxable income, considering the impact on small and mid-sized businesses. The figure was increased from the initially planned deduction of 10 million yen.
                
As for income tax, an additional 1 percent would be levied for the time being.
                
The draft also proposes a 1-percent reduction in the special income tax for reconstruction of areas affected by the 2011 earthquake and tsunami. The reconstruction tax is set to end in 2037, but it would be extended.
                
The chair indicated that the extension could be as long as 13 years, in order to secure the total amount required for reconstruction.
                
The tobacco and cigarette tax would be raised in phases with sufficient consideration given to domestic tobacco farmers.
                
The draft calls for implementing these measures at an appropriate time in 2024 or later.
                
Miyazawa suggested that the panel will discuss undecided tax rates and the timing of implementation next year.

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