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October 15, 2021

Anna Murray 

Though just inaugurated on Oct. 4, Japan’s 100th Prime Minister Fumio Kishida was planning to increase tax on investment income. Markets show their concern against this proposal.

Kishida opts to increase tax as one of options to boost the country’s economy. However Japanese stock markets criticize this idea for the recent slump. Social media even creates a term “Kishida shock” to depict their dissatisfaction.

So far the tax rate on investment income is 20%. For those who earn annual income around 100 million yen (USD$900,000), the tax difficulty reaches an unfair peak. That’s why Kishida originally designed to improve distribution by tax reformation after his oath of office. 

Facing market concern, Kishida claims on Oct, 10 that temporarily he won’t raise tax on investment income.