- Title: Japan's PM puts wage hike incentives ahead of higher capital gains tax
- Date: 11th October 2021
- Summary: TOKYO, JAPAN (FILE - JUNE 1, 2021) (REUTERS) STREET VIEW OF GINZA AREA PEDESTRIANS WALKING ON STREET ROAD SIGN READING (Japanese / English): "CHUO WARD GINZA 4" VARIOUS OF PEDESTRIANS WALKING ON STREETS
- Embargoed: 25th October 2021 09:16
- Keywords: Fumio Kishida Japan Prime Minister capital gains tax economy government income income gap parliament stimulus policies tax tax incentives wages
- Location: TOKYO, JAPAN
- City: TOKYO, JAPAN
- Country: Japan
- Topics: Asia / Pacific,Lawmaking,Government/Politics
- Reuters ID: LVA002EYPQ79J
- Aspect Ratio: 16:9
- Story Text: Prime Minister Fumio Kishida said on Monday (October 11) he will prioritise boosting wages through tax incentives, rather than imposing higher levies on capital gains and dividends to address Japan's income gap.
Kishida, facing opposition questions in parliament for the first time since becoming prime minister, also said a near-term priority would be to put the economy on a solid footing with bold monetary easing, flexible fiscal steps and a growth strategy.
"Regarding adjusting capital gains tax, it is among various options of distribution policy to create a virtuous cycle of growth and redistribution," Kishida told parliament, when asked by an opposition lawmaker about his earlier idea to raise capital gains tax.
"As for distribution policy, I believe that there are many other things that we should do first, such as reforming the tax system to achieve wage increases, or strengthening measures for the subcontractors," he said.
Kishida, who has made wealth redistribution his key policy agenda, had previously said adjusting taxes on capital gains and dividends would be among the options. But he walked back that pledge on Sunday (October 10), saying he would not change the taxes on investment income for now, a decision some analysts said reflected his concern about jolting stock markets.
(Production: Irene Wang) - Copyright Holder: FILE REUTERS (CAN SELL)
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