© Reuters File Photo: Japan’s new Prime Minister Fumio Kishida gave his first policy speech to the Japanese Parliament in Tokyo on October 1, 2021. Router / Kim Kyung-hun
TOKYO (Reuters) – Japan’s new prime minister Fumio Kishida said on Sunday he did not want to change the country’s taxes on capital gains and dividends because he wanted to take other steps to better distribute wealth, such as pay hikes for medical workers.
Kishida, who promised to eliminate wealth inequality, previously said that reviewing these taxes would be an option to close the income gap.
Kishida took over the top job in the world’s third-largest economy on Monday, replacing Yoshihide Sugar, which had lost its support by increasing the incidence of covid-1 infections.
“For the time being, I have no plans to touch the financial income tax,” Kishida, a commercial broadcaster, told a news conference on Fuji Television Network.
“The misconception is spreading that I can do it soon. If it is not firmly removed, it will cause unnecessary concern to those concerned.”
Some investors have expressed concern that the new prime minister could move forward with a capital-gain tax hike, signaling a return to the investor-friendly economic policy that Japan’s longest-serving prime minister, Shinzo Abe, followed from 2013 to 2020.
Japan’s benchmark has fallen by an average of 7% since Kishida won the leadership of the ruling Liberal Democratic Party (LDP) late last month, effectively securing the PM’s job due to the LDP’s parliamentary majority.
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