Japan Ruling Bloc Proposes 1.23-M.-Yen Tax Threshold

Tokyo, Dec. 13 (Jiji Press)--Japan's ruling coalition on Friday proposed that the minimum annual taxable income be raised from the current 1.03 million yen to 1.23 million yen, starting next year.

The tax chiefs of the ruling Liberal Democratic Party and its coalition partner, Komeito, made the proposal at a meeting with their counterpart from the opposition Democratic Party for the People.

The three tax chiefs plan to meet again as early as Tuesday after the DPFP, which seeks to raise the threshold to 1.78 million yen, opposed the proposal.

The secretaries-general of the three parties on Wednesday agreed to aim to raise the threshold to 1.78 million yen.

An increase in the threshold to 1.78 million yen is expected to lead to a decline of 7 trillion to 8 trillion yen in national and local tax revenue combined, shortages that local government officials are concerned about.

[Copyright The Jiji Press, Ltd.]