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In a recent statement at the Foreign Correspondents’ Club of Japan (FCCJ), former Secretary-General of the Liberal Democratic Party (LDP), Shigeru Ishiba, underscored his position on Japan’s tax policy, particularly concerning the New NISA (Nippon Individual Savings Account) and similar investment schemes. Ishiba made it clear that there is “no intention whatsoever” to impose new taxes on these investment vehicles. His comments come amidst ongoing debates about the necessity of tax reform to address perceived imbalances in the current system.
Ishiba’s remarks were aimed at reassuring both domestic and international stakeholders that the LDP, under his purview, remains committed to supporting financial initiatives designed to encourage personal investment. The New NISA, which offers tax-free benefits for small-scale investments, has been a cornerstone of Japan’s strategy to stimulate personal savings and investment. Ishiba’s statement signals a firm stance against any proposed modifications that could disrupt this framework.
Addressing broader concerns about the tax system’s integrity, Ishiba emphasized the importance of fairness in taxation. “The tax system must be fair,” he asserted. He questioned the fairness of tax rates, particularly the anomaly where income exceeding 100 million yen seems to benefit from reduced rates, suggesting that such inconsistencies undermine public confidence in the system. Ishiba’s remarks reflect a broader concern about ensuring that tax policies are equitable and transparent to maintain societal trust and the functional integrity of the nation’s financial framework.
This position reinforces the LDP’s commitment to maintaining a supportive environment for personal investments while advocating for a tax system that aligns with principles of fairness and trust. As Japan continues to navigate its economic challenges, Ishiba’s comments highlight a critical aspect of the ongoing policy discourse, underscoring the need for a balanced approach to taxation and investment incentives.