According to reports, the Japanese government and ruling party have reached an agreement on tax reform for the next fiscal year and decided to strengthen tax collection and administration of high-asset income groups. The core of the reform is to drastically lower the additional tax threshold for “super-rich” people with rich asset income such as stocks and land from the current total annual income of about 3 billion yen or more to over 600 million yen. The move is expected to expand the number of taxable people from the current 200 to 300 to about 2,000 people, and bring additional tax revenue of about 300 billion yen per year to the government. The purpose of this adjustment is to respond to society's concerns about the fairness of the current tax system — since Japan uses a progressive tax rate for labor income such as wages and a flat tax rate for income from stock and real estate sales, the actual tax burden on wealthy groups with extremely high asset income is relatively light. The funds raised by tax strengthening will be one of the important sources to fill the fiscal revenue gap caused by the abolition of temporary tax rates such as gasoline taxes. The relevant plan has received basic approval from the opposition parties. It will be included in the tax system revision plan for the next year, and it is planned to be implemented starting next year.

According to reports, the Japanese government and ruling party have reached an agreement on tax reform for the next fiscal year and decided to strengthen tax collection and administration of high-asset income groups. The core of the reform is to drastically lower the additional tax threshold for “super-rich” people with rich asset income such as stocks and land from the current total annual income of about 3 billion yen or more to over 600 million yen. The move is expected to expand the number of taxable people from the current 200 to 300 to about 2,000 people, and bring additional tax revenue of about 300 billion yen per year to the government. The purpose of this adjustment is to respond to society's concerns about the fairness of the current tax system — since Japan uses a progressive tax rate for labor income such as wages and a flat tax rate for income from stock and real estate sales, the actual tax burden on wealthy groups with extremely high asset income is relatively light. The funds raised by tax strengthening will be one of the important sources to fill the fiscal revenue gap caused by the abolition of temporary tax rates such as gasoline taxes. The relevant plan has received basic approval from the opposition parties. It will be included in the tax system revision plan for the next year, and it is planned to be implemented starting next year.