Japan Advances Proposed Economic Stimulus Plan, Could Impose 20% Flat Tax on Cryptocurrency

BlockBeats News, November 21st: Following Japanese Prime Minister Fumio Kishida's commitment to engage in cross-party discussions to implement a comprehensive tax reform, Japan will continue to advance its proposed economic stimulus plan, expected to be approved by the end of 2024.

The proposed tax reform measures include changes to income tax, corporate tax, and cryptocurrency tax. This signifies a shift in the ruling party's policy, which previously called for tax increases.

Japan's current policy regarding cryptocurrency taxation relies on a vague and fluctuating "miscellaneous tax" that can impose taxes of up to 55% on transactions. The opposition party is calling for a flat 20% tax rate on digital assets, along with other tax reduction measures.

Other tax reduction measures under consideration include increasing tax-free income for citizens from $6,650 to $11,345, reducing fuel taxes, and cutting sales tax until the employment market recovers by at least 2% (Cointelegraph).