Japan's Prime Minister: "We are not in a position to return tax revenue surplus to the people"
Tokyo - Japanese Prime Minister Shigeru Ishiba expressed reluctance towards returning the recent surge in tax revenue to the public, during a House of Budget Committee session on Wednesday. He was responding to the Democratic Party for the People's call to raise the annual income tax exemption threshold from 1.03 million yen to 1.78 million yen, citing the "substantial increase in tax revenue" as justification for returning the surplus to the people.
"We are not in a position to return (the tax revenue surplus) to the people," Prime Minister Ishiba stated in response to a question from Asano Satoshi, a House of Representatives member from the Democratic Party for the People.
While acknowledging that the government would also like to return the surplus to the public, Prime Minister Ishiba explained, "Corporate tax revenue is increasing due to the excellent performance of companies. However, while the income tax of high-income earners is indeed increasing, there are also many people who are unable to pay taxes. Consumption tax is not growing much as it is roughly in line with rising prices. Therefore, we are not in a fiscal position to return the surplus to the people."
He further justified the government's stance, stating, "While the increase in tax revenue is due to the factors I just mentioned, does this mean we have enough surplus to return to the public? We believe it is necessary to further stabilize the nation's fiscal situation and prepare for unforeseen circumstances."
Appealing for understanding, he added, "We would like to return (the surplus) if possible, but the current situation does not allow us to do so."
Asano countered by stating, "High-income earners are paying their taxes, but those who are struggling financially and low-income earners are having difficulty doing so. Therefore, the role of the government is redistribution. I would like to request that we continue discussions on the income tax exemption threshold, taking these points into consideration."
Thank you.
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