Fukuoka Governor Hattori addressed the potential financial impact of raising Japan’s income tax exemption threshold from ¥103 million to ¥178 million during a press conference on November 25. While expressing support for the revision as necessary to align with rising prices and minimum wages, he emphasized the need for government-led financial measures to mitigate the resulting fiscal shortfalls for local governments.
The policy change, championed by the Democratic Party for the People, has been agreed upon by the Liberal Democratic Party and Komeito. If enacted, the national and local governments combined could face a revenue loss of ¥7–8 trillion. For Fukuoka Prefecture, estimates predict a reduction of ¥467 billion in prefectural resident taxes, with an additional ¥1.1 trillion lost across the cities and towns, totaling a deficit of approximately ¥1.577 trillion.
Governor Hattori stressed the economic benefits of the change, such as increased disposable income and improved labor shortages, but warned of potential reductions in administrative service levels due to the sudden fiscal impact. He urged the central government to prioritize financial countermeasures to support regional municipalities during the transition. Source: NHK
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