Yuichiro Tamaki, the leader of his Democratic Party for the People (DPP), has vowed to implement a significant tax cut on bitcoin earnings should his party win. Tamaki revealed in a post on X (previously Twitter) on October 21 his desire to equal the rate now applied to stock market gains by cutting the tax on crypto income to 20%.
The current tax system in Japan categorizes cryptocurrency earnings as “miscellaneous income”, with tax rates ranging from 15% to 55% depending on income. By reducing the tax rate and enabling crypto-to-crypto transactions to take place free from causing a taxable event, Tamaki’s suggested changes would help lighten this load.
Tamaki underlined that his party’s strategy fits within a larger vision, aiming to position Japan as a Web3 industry leader. The DPP wants to create a more conducive environment for blockchain technology and bitcoin innovation in Japan by lowering taxes and promoting the use of digital assets. The party also promotes the stimulation of economic development by means of non-fungible tokens (NFTs).
Although Tamaki’s agenda is attracting attention, the DPP has an uphill fight in the forthcoming election. With just seven of 465 seats in Japan’s House of Representatives now, the party’s chances of getting enough votes to carry out its agenda are slim. Polls, however, indicate the DPP could acquire more seats, therefore inspiring optimism for the suggested crypto tax breaks.
Tamaki emphasized the importance of these developments for Japan’s future in the digital economy and asked his followers to share the DPP’s pro-crypto policies. The DPP’s strategy to attract voters primarily hinges on its focus on crypto tax reform and Web2 leadership as Japan’s election approaches.
The election is scheduled for October 27, and despite the DPP’s continued underdog status, Tamaki’s crypto-friendly approach has garnered interest from both the public and business community. Voters looking for a more contemporary, creative approach to Japan’s economic future might find his pledges to streamline the tax structure and help the expansion of digital assets appealing.
