Japan to consider discussing capital gains tax review next year – media
TOKYO, Nov. 17 (Reuters) – The Japanese government and the ruling party will consider discussing the country’s capital gains tax review next year as part of efforts to address disparities in income, Jiji News Agency reported.
The issue will be flagged as one of the main topics of debate in the outline of next year’s tax reform, which will be compiled by the government and the ruling party by the end of the year, said Jiji without identifying his sources.
Prime Minister Fumio Kishida, who has made wealth redistribution his key political agenda, previously raised the possibility of increasing Japanese taxes on capital gains and dividends.
But he kept his promise in October after being criticized for risking a downturn in the stock market, saying the government would not change taxes on investment income just yet. Read more
The investment income tax – imposed on capital gains on stocks and property, dividends and interest payments on Japanese government savings and bonds – is uniformly set at 20%, well below payroll tax rates of up to 45% in an effort to encourage investment.
The investment tax regime also helps reduce the overall burden on higher-income people, who tend to earn more from investments, an issue discussed in debates by the ruling party’s tax group last year as lawmakers seek to find a balance between fair taxation and the potential impacts on equities. markets.
($ 1 = 114.9100 yen)
Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Chris Reese and Sandra Maler
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