MOSCOW (Sputnik) – Japan’s ruling Liberal Democratic Party (LDP) plans to propose raising several taxes, including on non-heating tobacco products, to fund the country’s growing defense spending that will rise to 2% of GDP by fiscal year 2027, a Japanese broadcaster reported Monday, citing senior officials.
Senior officials from the PLD’s tax commission have said they are studying a plan that will focus on raising corporate taxes for small and medium-sized businesses in particular, according to the broadcaster.
According to sources quoted by the Japanese news agency, up to 800 billion yen will be guaranteed by a rise in corporate taxes and about 200 billion yen by the increase in tobacco tax under the plan. governmental.
Japan has allocated 5.4 trillion yen for defense spending in the fiscal year ending March 2023. The Ministry of Defense reportedly intends to increase the budget for the next fiscal year which starts in April 2023 at a record high of 5.595 trillion yen, while some experts believe defense spending will approach 6.5 trillion yen.