Japan PM Ishiba Rules Out Increase in Capital Gains Tax, According to Reuters

TOKYO – Japanese Prime Minister Shigeru Ishiba stated on Monday that he currently has no plans to consider increasing the tax on income derived from investments.

"I am not thinking of exploring this issue specifically at present," Ishiba told parliament when asked about the possibility of raising the tax rate.

Prior to winning the leadership race of the ruling party and assuming the role of premier, Ishiba had indicated that he would seek to increase taxation on investment income if he became prime minister.

The current tax on investment income, which encompasses capital gains from stocks and real estate, as well as dividends and interest from savings and Japanese government bonds, is uniformly set at 20%. This rate is considerably lower than the progressive tax rates on salaries, which can reach up to 45%, as part of an initiative to promote investment.

This flat-rate tax structure serves to reduce the overall tax burden for high-income earners, who typically generate more income through investments.