A possible corporate tax hike has become the focus of attention for the government and the ruling parties as they look for a stable source of funds for a planned defense spending increase, according to sources. They also plan to discuss the idea of targeting the corporate tax hike at large companies and excluding small and midsize firms.
On Thursday, Prime Minister Fumio Kishida instructed the ruling parties to consider raising tax to secure an additional about 1 trillion yen in fiscal 2027 to partially cover higher defense spending.
