Fumio Kishida, the Japanese Prime Minister, indicated that he might be open to reforming Japan’s crypto tax laws to spur Web3-related growth.
Last week, Kishida addressed parliament and stated that Web 3 could stimulate economic growth. He also suggested that he might be open to pro-business legal reform. He also spoke earlier this month to British investors, making comments on Web 3 and blockchain technology.
Critics claim that Japanese crypto-related talent and business were forced to the West by strict crypto tax policies implemented by former PMs and their governments. Yuichiro Tamaki, the opposition Democratic Party for the People leader, is one of the strongest critics of the current crypto tax policy. This would see crypto classified as miscellaneous income and not capital gains tax.
Recently, the latter called on Tokyo to abolish the current system and provide tax concessions for domestic businesses that hold or issue cryptoassets.
Tamaki challenged the PM again on the subject at the same meeting of the parliamentary buget committee. Tamaki stated that taxing individuals and companies should be limited to “real [fiat] profit realizations”. When coins are traded for fiat.
The Prime Minister replied, “We will carefully consider this proposal.”
Tamaki, however, stated on Twitter that Kishida, the Minister of Finance Shunichi Suzuki, and Tamaki had come over to greet him after the meeting was concluded. The PM was “surprisingly positive” when the Democratic Party for the People chief raised the tax issue.
Tamiki described the development as “good news.”
The tax code is being amended by forces within the PM’s party, the ruling Liberal Democratic Party. Some critics point out that many countries with sophisticated crypto tax laws choose to tax crypto earnings through capital gains tax protocols.
Kishida previously spoke about improving the environment to allow for “incorporation of new digital services” within the Web3 sector.
