Japanese Prime Minister Fumio Kishida yesterday said that he would not seek to change the country’s taxes on capital gains and dividends, as he intends to pursue other steps for better wealth distribution, such as raising wages of medical workers.
Kishida, who has vowed to rectify wealth disparities, previously said that reviewing those taxes would be an option in addressing income gaps.
Kishida’s new stance indicates his concern about jitters in the stock market caused by the prospects of higher tax levies.
Kishida took the top job in the world’s third-largest economy on Monday last week, replacing Yoshihide Suga, who had seen his support undermined by surging COVID-19 infections.
“I have no plan to touch the financial income tax for the time being... There are many other things to tackle first,” Kishida told a news program on commercial broadcaster Fuji Television Network. “Misunderstanding is spreading that I may do it soon. That will give unnecessary worry to people concerned, if not dispelled firmly.”
Investors have voiced concern that the new prime minister might press ahead with capital-gains tax increases, signaling a turnaround from investor-friendly economic policies pursued by Japan’s longest-serving prime minister, Shinzo Abe, from 2013 to last year.
Some analysts had called for raising Japan’s tax levied on investment income from the current 20 percent to raise more from the rich and fund steps to support low-income households.
Others were skeptical about the effects such tax increases might have on correcting wealth disparities.
Kishida’s Liberal Democratic Party makes no mention of reviewing taxes on capital gains and dividends in a draft campaign platform for the Oct. 31 general elections obtained by Reuters.
Investors had been concerned about any negative effect the higher tax rates could have on stock markets, which could cool local investment and drive away foreign investors.
European Central Bank (ECB) President Christine Lagarde is expected to step down from her role before her eight-year term ends in October next year, the Financial Times reported. Lagarde wants to leave before the French presidential election in April next year, which would allow French President Emmanuel Macron and German Chancellor Friedrich Merz to find her replacement together, the report said, citing an unidentified person familiar with her thoughts on the matter. It is not clear yet when she might exit, the report said. “President Lagarde is totally focused on her mission and has not taken any decision regarding the end of
French President Emmanuel Macron told a global artificial intelligence (AI) summit in India yesterday he was determined to ensure safe oversight of the fast-evolving technology. The EU has led the way for global regulation with its Artificial Intelligence Act, which was adopted in 2024 and is coming into force in phases. “We are determined to continue to shape the rules of the game... with our allies such as India,” Macron said in New Delhi. “Europe is not blindly focused on regulation — Europe is a space for innovation and investment, but it is a safe space.” The AI Impact Summit is the fourth
CONFUSION: Taiwan, Japan and other big exporters are cautiously monitoring the situation, while analysts said more Trump responses ate likely after his loss in court US trading partners in Asia started weighing fresh uncertainties yesterday after President Donald Trump vowed to impose a new tariff on imports, hours after the Supreme Court struck down many of the sweeping levies he used to launch a global trade war. The court’s ruling invalidated a number of tariffs that the Trump administration had imposed on Asian export powerhouses from China and South Korea to Japan and Taiwan, the world’s largest chip maker and a key player in tech supply chains. Within hours, Trump said he would impose a new 10 percent duty on US imports from all countries starting on
STRATEGIC ALLIANCE: The initiative is aimed at protecting semiconductor supply chain resilience to reduce dependence on China-dominated manufacturing hubs India yesterday joined a US-led initiative to strengthen technology cooperation among strategic allies in a move that underscores the nations’ warming ties after a brief strain over New Delhi’s unabated purchase of discounted Russian oil. The decision aligns India closely with Washington’s efforts to build secure supply chains for semiconductors, advanced manufacturing and critical technologies at a time when geopolitical competition with China is intensifying. It also signals a reset in relations following friction over energy trade and tariffs. Nations that have joined the Pax Silica framework include Japan, South Korea, the UK and Israel. “Pax Silica will be a group of nations
RSS