Japan considers delaying tax hikes to fund defense budget expansion due to election setbacks.

Japan may delay raising taxes to fund its growing defense budget, which aims to reach 2% of GDP from the current 1%. The government planned to increase personal income, corporate, and tobacco taxes but faces complications after losing its majority in recent elections. The coalition partner Komeito is cautious about extra defense spending, though public support is growing amid regional tensions.

4 months ago
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