The ruling coalition led by Japanese Prime Minister Sanae Takaichi is discussing raising income taxes from 2027 to raise funds to increase defense spending. According to the latest draft of the tax reform plan, the Liberal Democratic Party proposed to raise the tax rate for each income tax bracket by 1 percentage point starting January 2027. The draft states that the actual tax burden will not change for the time being, because the reconstruction surtax established for the 2011 earthquake will be reduced by the same amount at the same time.

The ruling coalition led by Japanese Prime Minister Sanae Takaichi is discussing raising income taxes from 2027 to raise funds to increase defense spending. According to the latest draft of the tax reform plan, the Liberal Democratic Party proposed to raise the tax rate for each income tax bracket by 1 percentage point starting January 2027. The draft states that the actual tax burden will not change for the time being, because the reconstruction surtax established for the 2011 earthquake will be reduced by the same amount at the same time.