According to Cointelegraph, Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has proposed a plan to lower the tax on crypto gains to 20% if elected. Tamaki announced this proposal in a translated X post on October 20, urging voters to support the DPP if they favor separate taxation for crypto assets at 20% instead of treating them as miscellaneous income.

Currently, the DPP holds only 7 out of 465 seats in Japan’s House of Representatives, making the implementation of this plan uncertain. The proposed tax rate would align crypto gains with the taxes paid on stock market profits. Under Tamaki’s plan, no tax event would be triggered when exchanging one crypto asset for another.

In response to an X user, Tamaki mentioned that the DPP might consider tax cuts on other financial income in the future but is currently focused on establishing Japan as a leader in the Web3 space. The upcoming election on October 27 will be crucial for the DPP, whose main campaign promise is to increase take-home pay to combat inflation.

Earlier this year, Japan’s Financial Services Agency announced plans for a comprehensive overhaul of the country’s tax code for fiscal year 2025, which includes provisions to lower taxes on crypto assets. Currently, crypto profits in Japan are taxed as miscellaneous income between 15% and 55%, depending on personal income, with the highest rate applying to individuals earning over 40 million Japanese yen ($268,000). In contrast, stock trading profits are taxed at a maximum rate of 20%.

Corporate crypto holders in Japan face a flat 30% tax rate on their holdings at the end of the financial year, regardless of whether they have made a profit through a sale. Despite the DPP’s slim chances of winning the election, a recent opinion survey from local news outlet Mainichi suggests that the party may increase its representation from 7 to as high as 20 seats. The Liberal Democratic Party and its coalition partner Komeito are expected to retain a majority of the total 465 seats.