People familiar with the matter revealed on Saturday that Japanese Prime Minister Takaichi Sanae's government is discussing a plan to raise corporate taxes in order to raise funds for the expansion of defense spending. Japan plans to revise three core security policy documents before the end of the year. After implementation, Japan's annual defense spending may exceed 10 trillion yen. Against the backdrop of rising threats to regional security, Japan continues to push ahead with efforts to strengthen defense capabilities. Corporate tax revenue is expected to be a stable source of funding. The government will also consider spending reforms, but it is currently uncertain whether it can raise sufficient funds to cover defense expenses. However, the business community may oppose the corporate tax increase, fearing that this move will curb wage increases and weaken Japan's international competitiveness, which will complicate discussions on raising funds to increase defense spending. A senior government official said that according to rough estimates of the equipment and defense capabilities required by the Ministry of Defense, related expenses “could expand to 70 trillion to 80 trillion yen.” A government source said that a further increase in the corporate tax “is an alternative”; a relevant person in the ruling coalition also said that “large and medium-sized enterprises have strong retained earnings, and it is difficult to oppose the corporate tax increase.”

People familiar with the matter revealed on Saturday that Japanese Prime Minister Takaichi Sanae's government is discussing a plan to raise corporate taxes in order to raise funds for the expansion of defense spending. Japan plans to revise three core security policy documents before the end of the year. After implementation, Japan's annual defense spending may exceed 10 trillion yen. Against the backdrop of rising threats to regional security, Japan continues to push ahead with efforts to strengthen defense capabilities. Corporate tax revenue is expected to be a stable source of funding. The government will also consider spending reforms, but it is currently uncertain whether it will be possible to raise sufficient funds to cover defense expenses. However, the business community may oppose the corporate tax increase, fearing that this move will curb wage increases and weaken Japan's international competitiveness, which will complicate discussions on raising funds to increase defense spending. A senior government official said that according to rough estimates of the equipment and defense capabilities required by the Ministry of Defense, related expenses “could expand to 70 trillion to 80 trillion yen.” A government source said that a further increase in the corporate tax “is an alternative”; a relevant person in the ruling coalition also said that “large and medium-sized enterprises have strong retained earnings, and it is difficult to oppose the corporate tax increase.”