Japan’s Kishida says tax aid to firms which raise wages a priority in wealth redistribution

0
47
Japan’s Kishida says tax aid to firms which raise wages a priority in wealth redistribution
Advertisement


Investing.com - Financial Markets Worldwide

Please try another search


Economy2 hours ago (Oct 11, 2021 02:25AM ET)

Japan's Kishida puts wage hike incentives ahead of higher capital gains tax
© Reuters. FILE PHOTO: Fumio Kishida, Japan’s prime minister, speaks during a news conference at the prime minister’s official residence in Tokyo, Japan, October 4, 2021. Toru Hanai/Pool via REUTERS/File Photo

By Leika Kihara and Daniel Leussink

TOKYO (Reuters) -Prime Minister Fumio Kishida said on Monday he will prioritise boosting wages through tax incentives, rather than imposing higher levies on capital gains and dividends to address Japan’s income gap.

Kishida, facing opposition questions in parliament for the first time since becoming prime minister, also said a near-term priority would be to put the economy on a solid footing with bold monetary easing, flexible fiscal steps and a growth strategy.

“It’s among options to create a virtuous cycle of growth and redistribution,” Kishida told parliament, when asked by an opposition lawmaker about his earlier idea to raise capital gains tax.

“But there are other things we should do first such as reforming the tax system to achieve wage increases,” Kishida said.

The government would start by overhauling corporate tax to help companies that are keen on raising wages, he said.

Kishida defended former Prime Minister Shin Abe’s “Abenomics” stimulus policies as having boosted growth, pulled Japan out of deflation and created jobs.

“We will now take various steps to redistribute wealth,” Kishida said. “The order in which we take these steps is crucial.”

Kishida, who has made wealth redistribution his key policy agenda, had previously said adjusting taxes on capital gains and dividends would be among the options.

But he walked back that pledge on Sunday, saying he would not change the taxes on investment income for now, a decision some analysts said reflected his concern about jolting stock markets.

Related Articles

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read More

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here