Yuichiro Tamaki, the leader of the Japanese Democratic Party (DPP), recently proposed a tax reform plan related to cryptocurrencies. He stated that if elected, he would reduce the capital gains tax on cryptocurrencies to 20%. This plan is part of his efforts to promote Japan as a Web3 nation. However, the Democratic Party, to which Tamaki belongs, currently has limited seats in the House of Representatives, and whether this policy can be implemented remains to be seen.

(Japan's crypto-friendly tax system aims for 'three consecutive years of reform,' JCBA and JVCEA seek to lower personal crypto taxes)

Plan to lower the cryptocurrency tax rate to 20%

On October 20, Tamaki stated on Twitter that he plans to adjust the capital gains tax on cryptocurrencies from the current 'miscellaneous income' model to a single 20% tax rate, the same as the securities transaction income tax. He urged voters to support this plan and emphasized that the Democratic Party is the only party supporting this tax reform.

Reduce the tax burden pressure of current policies and promote Japan as a leading Web3 country

On August 30 this year, the Japanese Financial Services Agency announced a comprehensive reform plan for the 2025 tax law, which includes provisions to lower taxes on crypto assets. Currently, Japan's cryptocurrency income tax is levied based on different tiers of personal income, with rates ranging from 15% to 55%.

According to data, if a person's annual income exceeds 40 million yen (about 260,000 USD), they need to pay up to 55% in taxes. In comparison, the highest tax rate for securities transaction income in Japan is only 20%.

Tamaki's plan also includes an important change: the exchange between different cryptocurrencies will no longer trigger taxes, significantly reducing the burden on cryptocurrency investors. Tamaki emphasized that this tax reform is not only to attract cryptocurrency investors but also part of his strategy to promote Japan as a Web3 powerhouse. He stated that he wants to make Japan a strong country in the Web3 field, which aligns with his political views on increasing the real income of the public and addressing inflation challenges.

(Japan's Financial Services Agency reforms cryptocurrency payment regulations, optimizes processes for handling crypto assets and tax systems)

Realistic challenges: The Democratic Party remains in a weak position

However, according to Japanese media reports, there are a total of 465 seats in the House of Representatives, and the Democratic Party, to which Tamaki belongs, currently holds only 7 seats. In the upcoming election on October 27, it is expected that they might increase to a maximum of 20 seats. At the same time, the coalition of the Liberal Democratic Party and Komeito is expected to maintain a majority of seats, and whether Tamaki's plan can be realized remains to be observed.

This article discusses the Japanese Democratic Party's election promise to reduce the cryptocurrency tax rate to 20%, promoting Japan as a Web3 powerhouse. It first appeared in Chain News ABMedia.