Japan’s PM rules out immediate investment income tax hike

Japanese Prime Minister Shigeru Ishiba clarified on Monday that there are no immediate plans to raise taxes on investment income in the country.

He made this statement during a parliamentary session in response to questions about potential tax rate adjustments.

Prior to becoming prime minister, Ishiba had indicated that he might consider raising taxes on investment income.

The tax on investment income in Japan is a flat rate of 20 per cent, which is lower than the progressive tax rates on salaries that can go up to 45 per cent. This system aims to promote investment and reduce the tax burden on high-income earners who earn more from investments.

Attribution: Reuters

Subediting: M. S. Salama