TOKYO (Businesshala) – Japan’s new prime minister, Fumio Kishida, said on Sunday that he would not seek to change the country’s taxes on capital gains and dividends as he intended to take other steps to better distribute wealth, such as wages. Increasing medical staff.
Kishida, who has vowed to address wealth inequalities, previously said reviewing those taxes would be an option to close the income gap.
Kishida took the top job in the world’s third-largest economy on Monday, replacing Yoshihide Suga, who had seen his support for surging COVID-19 infections undercut.
“At the moment I have no plans to touch my financial income tax … there are many other things to deal with first,” Kishida told a news program on the commercial broadcaster Fuji Television Network.
“Misconception is spreading that I may do it soon. If not done away with strongly, it will cause unnecessary worry to the people concerned.”
Some investors have expressed concern that the new premier may go ahead with a capital gains tax hike from 2013 to 2020, signaling a shift from investor-friendly economic policies adopted by Japan’s longest-serving chief Shinzo Abe.
Japan’s benchmark Nikkei average has dropped 7% since Kishida won the ruling Liberal Democratic Party (LDP) leadership election late last month, practically securing the position of premier based on the LDP’s parliamentary majority. .