Japan Eyes Hiking Corporate Tax to Boost Defense From 2026

The Japanese government is requesting a 4% surtax on corporate tax starting in April 2026 to fund increased defense spending.

• The government submitted a series of tax reform proposals to the ruling parties on Thursday
• Tax hikes will be needed from FY27 onward to fill a ¥1 trillion ($6.6 billion) spending need for defense every year
• The govt also proposes raising the tobacco tax by ¥0.5 per cigarette every year for three years, starting in 2027
• Additionally, it plans a 1% increase on individual income tax from Jan. 2027, which will be offset by a 1% cut in special reconstruction ...