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 bipartisan discussions.
The economic stimulus package is expected to be approved before the end of 2024. According to Bloomberg, the proposed tax reform measures will include income tax, corporate tax, and cryptocurrency tax.
This includes tax changes to the virtual currency tax rate, which represents a shift in policy direction for the ruling party, which had previously advocated higher tax rates. Japan's current virtual currency tax policy applies 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 proposed 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, gasoline tax cuts, and a consumer spending cut until the job market recovers by at least 2%.
This includes lowering taxes, etc.