TOKYO, Dec 5 (NNN-NHK) – Japan plans to postpone a tax rise intended to fund a planned increase in the nation’s defence spending, local media reported, yesterday.
After Prime Minister, Fumio Kishida, called for raising defence spending to two percent of the country’s gross domestic product in fiscal 2027, from the current one percent, the government will further deliberate on measures to secure a stable source of revenue.
The government will set the general direction of the plan but is likely to forego deciding on a specific tax increase, when it compiles the initial budget for fiscal 2023, later this month, reported the media, citing a government source.
It plans to prioritise decreasing non-defence spending, given that some lawmakers from the Liberal Democratic Party are opposed to raising taxes that would directly affect consumers and businesses, the source said.– NNN-NHK
