Japan Pushes for Crypto Tax Reform to Stimulate Economy

Japan's economic stimulus package includes a proposal to change the tax on virtual currencies to a flat 20% rate instead of the current variable "other income" tax rate, according to Cointelegraph on the 20th (local time).
According to the report, Japan is set to implement proposed economic stimulus measures after Prime Minister Shigeru Ishiba pledged to push through comprehensive tax reform through cross-party discussions.
The economic stimulus package is expected to be approved before the end of 2024. According to Bloomberg, the proposed tax reform measures would include income tax, corporate tax, virtual
This includes changes to currency taxation, which represents a shift in policy direction for the ruling party, which has previously advocated higher tax rates. Japan's current cryptocurrency tax policy involves a vague and variable "other income tax."
The opposition party has called for a flat 20% tax rate on digital assets, along with a range of tax exemptions.
Other tax cuts under discussion include raising the income tax exemption threshold from the current 1.03 million yen to 1.78 million yen, a reduction in gasoline taxes, and a tax cut until the job market recovers by at least 2%.
It includes proposals such as lowering the consumption tax.