Japan PM Kishida says has no plan to alter capital-gains, dividend taxes
Reuters
Published Oct 09, 2021 11:41PM ET
Updated Oct 10, 2021 04:10AM ET
TOKYO (Reuters) -Japan's new Prime Minister, Fumio Kishida, said on Sunday he won't seek to change the country's taxes on capital gains and dividends for now as he intends to pursue other steps for better wealth distribution, such as raising wages of medical workers.
Kishida, who has vowed to rectify wealth disparities, had previously said reviewing those taxes would be an option in addressing income gaps.
The premier's new stance indicates his concern about jitters in the stock market caused by the prospects of higher tax levies.
Kishida took the top job in the world's third-largest economy on Monday, replacing Yoshihide Suga, who had seen his support undermined by surging COVID-19 infections.
"I have no plan to touch the financial income tax for the time being ... There are many other things to tackle first," Kishida told a news programme on commercial broadcaster Fuji Television Network.
"Misunderstanding is spreading that I may do it soon. That will give unnecessary worry to people concerned, if not dispelled firmly."
Some investors have expressed concern that the new premier may press ahead with capital-gains tax hikes, signalling a turnaround from investor friendly economic policies pursued by Japan's longest-serving premier, Shinzo Abe, from 2013 to 2020.
Some analysts had called for raising Japan's tax levied on investment income from the current 20% to raise more from the rich and fund steps to support low-income households.
Others were sceptical about the impact such tax hikes may have on correcting wealth disparities.
Kishida's ruling Liberal Democratic Party (LDP) made no mention of reviewing taxes on capital gains and dividends in its campaign platform for the Oct. 31 general elections, a draft obtained by Reuters showed.
Investors had been concerned about any negative impact a higher tax rate on capital gains and dividends could have on stock markets, which could cool local investment and drive away foreigners.
Japan's benchmark Nikkei average has declined 7% since Kishida won the LDP leadership election late last month.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.