Japan PM Ishiba rules out hike in capital gains tax
3:51 am Monday, October 07th, 2024
TOKYO (Reuters) – Japanese Prime Minister Shigeru Ishiba said on Monday he had no plan for now to consider raising the country’s tax on income from investments.
“At present, I am not thinking of exploring this issue specifically,” Ishiba told parliament, when asked whether his government will consider raising the tax rate.
Before winning the ruling party’s leadership race and being appointed premier, Ihiba had said he would beef up the taxation on investment income if he became prime minister.
The tax on income from investments – imposed on capital gains on stock and property, dividends and interest payment on savings and Japanese government bonds – is uniformly set at 20%, below progressive tax rates on salaries of up to 45% in an effort to encourage investment.
The flat-rate tax system helps lower the overall burden for high-income earners, who tend to earn more through investments.
(Reporting by Leika Kihara; Editing by Shri Navaratnam)
