Japan Democratic Party Leader Promises Crypto Tax Cut to 20% If Elected

The leader of the People's Democratic Party of Japan, Yuichiro Tamaki, promises to reduce the cryptocurrency tax to 20% along with a host of other cryptocurrency-related policies if the party is elected.

in a x.com/tamakiyuichiro/status/1847834459233800277″ target=”_blank”>x publication On October 21, Japanese politician and leader of the Democratic Party for the People, Yuichiro Tamaki, shared his party's proposed policies regarding cryptocurrencies in Japan. The PDP leader proposed that, if elected, taxes on crypto profits would be reduced to 20%.

“If you believe crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, vote for the Democratic Party for the People. There will be no taxes when exchanging cryptoassets with other cryptoassets,” Tamaki wrote in a x.com/tamakiyuichiro/status/1847834459233800277″ target=”_blank”>translated post.

Under Japan's current regulations, cryptocurrencies are classified as “miscellaneous income,” meaning Japan's cryptocurrency tax could reach up to 55% depending on personal income. Meanwhile, profits made from stock trading receive a maximum tax rate of 20%.

In the PDP policy statementone of its main points includes “supporting the token economy using cryptoassets.” The party promises to use non-fungible tokens, as well as cryptocurrencies, to boost Japan's economy.

“Anyway, for now we want to make Japan a strong nation in the web3 business,” Tamaki said. x.com/tamakiyuichiro/status/1847959011301441851″ target=”_blank”>in x in response to a user's question.

inside the policy statementDPP proposes taxing crypto profits at 20%, putting digital assets on the same level as taxes on stock market profits. Therefore, no tax event would occur when trading crypto assets under Tamaki's plan.

In addition to reducing the cryptocurrency tax, DPP promises to increase the leverage multiplier from two to ten times and introduce cryptocurrency exchange-traded funds. They also plan to convert the yen into an electronic currency.

“Promote the issuance of “digital regional currencies” (provisional name) by local governments as crypto assets that will help revitalize local economies,” said the DPP in Japan.

According to a recent survey According to Japanese media Mainichi, the DPP has little chance of winning the elections in Japan.

The Liberal Democratic Party and its coalition partner Komeito are in the lead with the majority of votes. Meanwhile, the PDP could see its representation increase from seven to 20 seats.

Following his victory on October 1, the chairman of the Liberal Democratic Party and current Prime Minister of Japan, Shigeru Ishiba, announced through a policy document that he intends to use blockchain and nft technology to boost Japan's economy through the revaluation of local assets such as food and tourism on a global scale.

Additionally, Masaaki Taira, current head of the LDP's Web3 working group and Minister of Digital Affairs, proposed a plan to connect diverse experiences and apply Japanese intellectual property laws to nfts. He also suggested measures to boost cryptocurrency startups by reforming Japan's tax system.