The Liberal Democratic Party and its coalition partner, the Japan Innovation Party, compiled its annual tax reform proposal Friday, including measures to raise the income tax threshold and use a levy that had helped fund reconstruction efforts to now fund a planned defense spending hike.
Reflecting revived cooperation with the Democratic Party for the People, the ruling coalition welcomed calls to raise the income tax threshold to ?1.78 million ($11,400), effectively securing the DPP’s support in upcoming deliberations over the budget for fiscal 2026.
”The discussion was grounded in a citizen’s perspective,” Itsunori Onodera, the chief of the LDP’s tax committee, told reporters Friday. “This tax reform is imaginative.”
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