Government Struggles to Increase Taxes for Defense Spending

Due to an increase in defense spending, the government and ruling party are faced with difficulties in coordinating tax increases, which fall short of 1 trillion yen.

Koki Kadowaki, a political correspondent from Fuji Television, will report the latest updates from the parliamentary press room. A senior government official stated, "The Prime Minister is determined to increase the defense budget." Minister of Economy and Security, Kouichi Hagiuda, expressed his dissatisfaction on Twitter, stating, "I cannot comprehend the true intention behind the Prime Minister's statement about raising salary concerns at this time.

Moreover, voices within the party have begun to express opposition to the sequencing of increasing taxes before detailing defense capabilities. Chief Cabinet Secretary Matsuno stated, "I am aware of Minister Takashi's remarks on social media. We have had various discussions with Cabinet members, but I do not wish to respond." In addition, the government is considering gradually raising taxes on "heated non-combustible cigarettes" and other products starting in 2024, while also considering measures to alleviate the burden on small and medium-sized enterprises.

Opposition to tax hikes within the party runs deep, and coordination has proven difficult. Facing challenges in coordinating tax increases due to rising defense spending, the government and ruling party have struggled to increase tax revenue by less than 1 trillion yen. Fuji TV political reporter Mendo Yuki will report on the latest developments from inside the parliament building.

According to a senior government official, "the Prime Minister is determined to increase the defense budget." However, the Minister of Economic Security, Takashi Takamichi, expressed dissatisfaction on Twitter, stating, "I don't understand the true intention behind the Prime Minister's statement to cool down the mentality of raising salaries at this time." There are also voices within the party saying that "increasing taxes before explaining the contents of defense capability is not reasonable." Cabinet Secretary Matsuno said, "I am aware of Minister Takamichi's comments on social media. We have had various discussions with Cabinet Ministers, but I do not want to answer.

In addition, the government is considering raising taxes on "heated tobacco products" and other items, gradually increasing tax revenue from 2024, while also considering measures to ease the burden on small and medium-sized enterprises. However, opposition within the party to tax hikes is deeply entrenched, and there are significant coordination difficulties.

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