Japan will raise taxes in 2026 to support increased defense spending, aiming to double it to 2% of GDP by 2027. The government plans to generate an additional 1 trillion yen per year by 2027 through these tax increases.
The tax changes include a 4% surtax on corporate taxes, along with gradual increases in tobacco and income taxes. To balance the impact, there will be some relief, such as reducing disaster reconstruction levies.
The decision comes amid growing regional security concerns, but the tax hikes face criticism from those worried about their economic impact.
