To use this site, please disable the ad blocking feature and reload the page.
This website uses cookies to collect information about your visit for purposes such as showing you personalized ads and content, and analyzing our website traffic. By clicking “Accept all,” you will allow the use of these cookies.
Users accessing this site from EEA countries and UK are unable to view this site without your consent. We apologize for any inconvenience caused.
Yomiuri Shimbun file photo The Prime Minister’s Office in Chiyoda Ward, Tokyo
The Yomiuri Shimbun
13:48 JST, December 14, 2024
The government and the ruling parties decided on Friday to postpone making a decision on when to raise income tax rates to secure funds needed to strengthen the nation’s defense capabilities.
The government, the Liberal Democratic Party and its junior coalition partner Komeito initially planned to raise rates starting in January 2027, but after discussions between the two parties, they decided they will instead “continue to consider” the timing.
However, the possibility of beginning the tax increase in January 2027 has not been eliminated. They plan to discuss the matter again at next year’s meeting of the Tax Commission.
The LDP’s Research Commission on the Tax System presented its revised proposals at a meeting on the same day. The commission’s chairperson Yoichi Miyazawa said after the meeting: “We will decide on when to raise the income tax rate next year or later. There are all kinds of possibilities.”
They agreed to postpone deciding when to raise the income tax rate because Komeito was reluctant to make that decision at a time when the ruling parties and the Democratic Party for the People have been discussing tax cuts, including raising the “¥1.03 million annual income barrier.”
Miyazawa said that Komeito had a point. Komeito Secretary General Makoto Nishida praised the postponement, saying, “It is right not to raise taxes while sending a message about cutting taxes.”
