Japan passes stimulus package, promises crypto tax reform
Japan will continue with its proposed stimulus package after Prime Minister Shigeru Ishiba pledged to hold bilateral talks on comprehensive tax reform.
Economic stimulus package It is expected to be approved before the end of 2024. According to Bloomberg, the proposed tax reform measures include changes to income tax, corporate tax and cryptocurrency taxes. This shows a change in the ruling party's policy, which previously demanded high taxes.
Researchers described the situation as “stuck between a rock and a hard place”.
Japanese writer Takeshi Suzuki described the situation on X.com on November 8. Source: Takeshi Suzuki
Stimulation and relief
Japan's current policy regarding cryptocurrency taxes is based on a small and variable “variable tax” that can be levied at up to 55% on transactions. The opposition party has called for a flat tax rate of 20% on digital assets alongside several other tax cuts.
Other tax cuts under discussion include raising the tax-free threshold from $6,650 to $11,345, cutting fuel taxes and cutting the sales tax until the labor market recovers at least 2 percent.
Related: SEC approves Coincheck as first Japanese crypto exchange on Nasdaq
Cryptocurrency in Japan
Japan's digital assets market is showing signs of maturing and growing soon, even as the country strives to grow its economy before 2025.
As Cointelegraph recently reported, before Ishiba was elected prime minister in September, then-frontrunner Yuichiro Tamaki promised digital asset reform as part of his campaign pledge to make Japan a world leader. Web3.
While Tamaki's defeat ensured that the ruling Liberal Democratic Party would remain in power, the hotly contested referendum marked a shift in national politics. The incumbent party held the top spot but lost 68 seats in the House of Representatives, likely due to its shift toward bipartisan tax reform.
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