【Japanese Prime Minister vows to include cryptocurrency tax cuts in stimulus plan】
Japanese Prime Minister Shigeru Ishiba promised to incorporate the tax reform proposal from the opposition Democratic Party into the economic stimulus plan, including tax incentives for gasoline and cryptocurrency assets.
The Democratic Party's proposal focuses on raising the tax-exempt income limit from 1.03 million yen (approximately 6,650 USD) to 1.78 million yen (approximately 11,435 USD), and temporarily reducing the sales tax to 5% until wages increase by 2%. At the same time, the plan includes tax incentives for companies that raise wages, invest in emerging industries, and generate income from cryptocurrency assets.
Currently, Japan imposes a tax rate of up to 55% on cryptocurrency asset income, which is significantly higher than the 20% tax rate on stock trading. The Democratic Party proposed to reduce the tax rate on cryptocurrency asset income to 20% to stimulate investment and promote the development of the token economy.
Shigeru Ishiba's policies also support blockchain and NFT technology, aiming to revitalize the economy. The ruling Liberal Democratic Party's Web3 working group suggested utilizing NFTs to promote intellectual property applications and supporting cryptocurrency startups through tax reform.
This tax reform aims to facilitate economic growth, update long-unadjusted tax standards, and support emerging technology industries. The plan is expected to be announced this week, with related discussions to be completed by the end of the year.