Japan’s political landscape is abuzz with discussions on potential tax changes as the ruling party’s leadership race heats up. Shigeru Ishiba, a former Japanese defence minister and a prominent candidate in the race, has recently suggested that there is “room to raise” corporate taxes, according to Kyodo News.
In a webcast related to the upcoming election, Ishiba emphasized, “There are still firms that can bear the tax burden. I would like them to bear it a little more.” His views on tax reform have been pivotal in shaping the discourse surrounding economic policies in Japan.
Another contender in the Liberal Democratic Party’s leadership race, Shinjiro Koizumi, a former Japanese environment minister, has proposed the introduction of a carbon tax. Koizumi voiced concerns that without a carbon tax, Japan may face taxes on trade with Europe, where such taxes are on the rise.
On the flip side, Sanae Takaichi, the minister overseeing economic security and also in the running for the LDP leadership, has taken a different stance. Takaichi stated her opposition to tax hikes in the near future, citing the need for price stability before considering any tax adjustments.
The focal point of these discussions lies in the impending leadership change within the LDP. The party, enjoying a parliamentary majority, is set to elect a new leader on September 27, who will succeed the current Prime Minister, Fumio Kishida. The outcome of this leadership election is poised to influence Japan’s economic landscape significantly.
