The Japanese government is considering raising the Japanese tobacco tax to make up for the shortfall in income, according to the report in Japan today.
Prime Minister Andouble Shinzo of the Liberal Democratic Party’s coalition before the election made rolling victory, commitment to the consumption tax increased funding for education and child welfare spending, while the consumption tax will be in 2019 years 10 months from the 8% increase to 10%. However, the government will also introduce measures to reduce the tax rate, by limiting the amount of daily necessities levied to reduce the impact of high consumption tax on low-income families. This measure is expected to reduce revenues by about 1 trillion yen from the tax hike.
The government and the ruling party will soon begin to discuss the expected rise in tobacco tax, which is part of the 2018 fiscal year reform starting in April next year. Completing the draft of the reform before the end of the year. It’s not clear how much the government can do to raise the tobacco tax hike. The country on a tax increase in 2010, when the national income increased by tens of billions of yen.
In the 2015 fiscal year, the tobacco tax revenue was about 2 trillion and 200 billion yen, while the number of smokers has been declining, partly because of the past tax increase. Sources say this trend may affect the next round of tax increases.
As for other alternative sources of income, the government is also considering increasing taxes on the income of financial transactions, such as stock dividends and stock trading.