Prime Minister Fumio Kishida instructed the Liberal Democratic Party and its ruling coalition partner Komeito on Thursday to consider ways to increase annual tax revenues by about 1 trillion yen by fiscal 2027 to fund a drastic enhancement of the nation's defense capabilities.
According to sources, the government is likely to decide when to start raising taxes after taking the economic situation and other factors into consideration, but it does not intend to increase taxes next fiscal year.
The government plans to boost defense spending to about 43 trillion yen over a five-year period beginning in fiscal 2023, according to a plan approved by the ruling parties on Wednesday.
