Motegi proposes suspension of defense tax hike, aims for alternative funding and economic revival
Motegi outlined that while the objectives of enhancing national defense and bolstering childcare support remain crucial, the methods of financing these initiatives are set to change. He proposed leveraging non-tax revenues, specifically utilizing foreign currency assets from the "Foreign Exchange Fund Special Account," to mitigate the impact of sudden exchange rate fluctuations. This approach represents a departure from the Kishida administration's strategy of raising taxes to fund these critical areas.
