Japan Tax Reform Package to Include 1.23-M.-Yen Threshold

Tokyo, Dec. 18 (Jiji Press)--Japan’s upcoming fiscal 2025 tax system reform package is seen including a proposed hike in the income tax threshold from the current 1.03 million yen per year to 1.23 million yen, sources said Wednesday.

The package will be adopted as early as Friday.

The ruling Liberal Democratic Party and its coalition partner, Komeito, proposed to the Democratic Party for the People the idea of raising the threshold to 1.23 million yen, although the opposition party seeks a hike to 1.78 million yen.

The DPFP broke off tax talks with the LDP-Komeito coalition Tuesday, complaining that the ruling pair made no fresh proposal on the tax threshold issue.

“It’s surprising, rather than disappointing,” that the government and the ruling camp are seen deciding on the hike to 1.23 million yen, DPFP leader Yuichiro Tamaki said Wednesday, indicating that his party may vote against the upcoming draft budget for fiscal 2025.

[Copyright The Jiji Press, Ltd.]