Japan plans tax hikes to fund defense spending, aiming for 2% of GDP by 2027.

Japan plans to raise corporate taxes by 4% in April 2026 and income taxes by 1% starting January 2027 to fund a significant increase in defense spending, aiming for 2% of GDP. The country seeks to collect an additional 1 trillion yen annually through these tax hikes and incremental increases in tobacco taxes from April 2026. The five-year defense budget totals 43 trillion yen, a move that has sparked domestic and international concern.

December 11, 2024
9 Articles

Further Reading