{"id":2006,"date":"2025-12-08T20:34:05","date_gmt":"2025-12-08T20:34:05","guid":{"rendered":"https:\/\/tona.today\/?p=2006"},"modified":"2025-12-08T20:37:33","modified_gmt":"2025-12-08T20:37:33","slug":"japan-considers-income-tax-hike-in-2027-to-cover-increase-in-defense-spending","status":"publish","type":"post","link":"https:\/\/tona.today\/?p=2006","title":{"rendered":"Japan considers income tax hike in 2027 to cover increase in defense spending"},"content":{"rendered":"\n<p><br>Japan&#8217;s ruling party, led by Prime Minister Sanae Takaichi, is considering raising the country&#8217;s income tax in January 2027 to cover part of a substantial increase in defense spending, sources close to the matter said Thursday.<\/p>\n\n\n\n<p>The plan being floated within the Liberal Democratic Party would collect revenue for defense-related spending through a special income tax, the sources said.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Asake - Organise (Official Video)\" width=\"980\" height=\"551\" src=\"https:\/\/www.youtube.com\/embed\/_u4_iWCvZ5c?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Before Takaichi became premier in October, Japan decided to boost its defense-related spending to a combined 43 trillion yen over five years through March 2028 to cope with growing security threats.<\/p>\n\n\n\n<p>The increase will be partly funded by raising corporate, tobacco and income taxes, but details have yet to be worked out on the timing of the income tax hike at a time of persistent inflation hurting households.<\/p>\n\n\n\n<p>The plan under discussion within the LDP would raise the income tax so it would translate into upwards of 200 billion yen in added revenue, according to the sources.<\/p>\n\n\n\n<p>A special income tax levied to finance rebuilding projects after the 2011 tsunami and nuclear disaster would also be reduced in an apparent effort to soften the expected blow to taxpayers.<\/p>\n\n\n\n<p>But given that the temporary disaster-related income tax would then be extended to bring in the same amount of revenue overall, the envisioned defense-use income tax would still represent an added burden for households in the long term.<\/p>\n\n\n\n<p>Before entering a coalition arrangement with the Takaichi-led LDP, the formerly opposition Japan Innovation Party was against tax hikes to pay for increased defense-related spending.<\/p>\n\n\n\n<p>The corporate and tobacco taxes will be raised beginning next April, with an additional levy of 4 percent of the amount paid in corporate taxes. The tobacco tax hike will start with higher levies on vaping products.<\/p>\n\n\n\n<p>Through the increases in the three tax categories alone, the government intends to secure slightly over 1 trillion yen annually by the end of March 2028. <a href=\"https:\/\/japantoday.com\/category\/politics\/update1-japan-mulls-income-tax-hike-in-2027-to-cover-increase-in-defense-spending\">(JapanToday)<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Japan&#8217;s ruling party, led by Prime Minister Sanae Takaichi, is considering raising the country&#8217;s income tax in January 2027 to cover part of a substantial increase in defense spending, sources close to the matter said Thursday. The plan being floated within the Liberal Democratic Party would collect revenue for defense-related spending through a special income [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1422,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[2407,2406,526,1304,1822,671],"class_list":["post-2006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign","tag-defense","tag-income-tax","tag-japan","tag-liberal-democratic-party","tag-sanae-takaichi","tag-security"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Japan considers income tax hike in 2027 to cover increase in defense spending - Tona Today<\/title>\n<meta name=\"description\" content=\"Japan&#039;s ruling party, led by Prime Minister Sanae Takaichi, is considering raising the country&#039;s income tax in January 2027\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tona.today\/?p=2006\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Japan considers income tax hike in 2027 to cover increase in defense spending - 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