Japan plans to increase taxes for defense spending

Japan plans to increase taxes for defense spending
Japan plans to increase corporate and tobacco taxes to fund defense spending and disaster recovery, gaining up to 1.2 trillion yen.

According to a report by Trend, Japanese authorities believe that increasing corporate taxes and tobacco consumption taxes are the main sources of funding for increasing national defense spending.

In particular, there will be phased increases in the corporate income tax and tobacco consumption tax starting around 2024. Currently, these taxes are 23.2% and 61.7%, respectively. There is also consideration being given to the possibility of using some of the revenue generated from these taxes for the recovery of areas affected by the 2011 earthquake and tsunami.

The Japanese government estimates that it will gain an additional 1.1 to 1.2 trillion Japanese yen (equivalent to approximately 56.1 to 61.2 billion Chinese yuan) through this method. The plan is to generate up to 70% of this amount by increasing corporate taxes.

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