As Japan gears up for early elections, Yuichiro Tamaki, leader of the DPP, has announced a crypto-friendly tax policy to attract voters.
Tamaki outlined plans to reduce taxes on cryptocurrency gains to 20%, the same rate applied to stock market profits.
Tamaki’s Bold Crypto Tax Proposal
Tamaki’s proposal exempts crypto-to-crypto transactions from triggering a taxable event, aiming to boost the country’s crypto sector.
If elected, Japan’s Democratic Party for the People (DPP) leader @tamakiyuichiro promises clear tax cuts and regulatory reforms for cryptocurrencies. pic.twitter.com/OT0wveeuPv
— Coinwaft (@coinwaft) October 21, 2024
Under the current tax regime, crypto earnings are taxed as high as 55% for individuals earning over 40 million yen ($268,000).
Similarly, crypto profits are filed under miscellaneous income, subjecting them to a much higher tax bracket compared to stocks. Corporate cryptocurrency holders also face a flat 30% tax on their holdings, regardless of profit or loss.
Tamaki’s proposal seeks to remedy these discrepancies by easing the tax burden on crypto investors and promoting the use of non-fungible tokens (NFTs) in governance.
Recall that the early elections were triggered by Prime Minister Fumio Kishida’s resignation after months of financial scandals and low approval ratings.
"Japan's Prime Minister Fumio Kishida said he would step down next month, succumbing to public disaffection over political scandals and rising living costs"
Ha ha … silly man!
🤣🤣🤣🤣🤣 pic.twitter.com/sTOrCSsfsw— Sandeep Manudhane (@sandeep_PT) August 16, 2024
However, Tamaki’s DPP faces an uphill battle, controlling just seven out of 465 seats in the lower house.
Polls from Mainichi suggest the DPP may gain some traction, potentially increasing its seats to around 20, but the party remains a significant underdog.
In his post, Tamaki called on followers to vote for the DPP and spread awareness of the party’s policies, particularly its crypto tax reforms.
Public Reaction and Future Prospects
Tamaki’s proposals have drawn mixed responses. Some voters criticized the heavy taxation in Japan, while others welcomed the simplification of filing tax returns under the new plan.
The DPP’s broader platform also includes raising allowable leverage rates for crypto trading, establishing exchange-traded funds (ETFs), and introducing a digital yen currency.
Tamaki has expressed his vision for Japan to become a leader in the Web3 space, positioning the country as a hub for digital innovation.
総合課税化は将来的な検討課題で今は考えていません。とにかく今は、日本をweb3ビジネス強国にしたいと考えています。
— 玉木雄一郎(国民民主党代表) (@tamakiyuichiro) October 20, 2024
Tamaki’s policies align with global trends as similar crypto-friendly discussions are taking place in the U.S., with Republican candidate Donald Trump expressing support for digital assets.