Ruling camp approves tax reform proposal

Ruling camp approves tax reform proposal


The coalition ruling on Friday approved an annual tax reform proposal for the next fiscal year starting in April, including an increase of the tax-free income threshold from ¥1.03 million ($6,610) to ¥1.23 million, after signing an agreement to “continue talks in good faith” with its partial alliance partner, the Democratic Party for the People, following a rocky week of negotiations.

Ahead of the Liberal Democratic Party and Komeito bloc’s approval, the three parties’ secretaries-general signed a confirmation letter stating that discussions will resume for implementing their Dec. 11 agreement with the “aim” to raise the threshold to ¥1.78 million in the next fiscal year.

“The proposal has been finalized with the amount of ¥1.23 millioncausing the DPP tax chief to leave in the middle of our meeting (on Tuesday), which leaves us unable to implement the three-party agreement. To prevent that from happening, we confirmed that our talks will resume,” LDP Secretary-General Hiroshi Moriyama told producers Friday morning.



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