The ruling coalition on Friday approved an annual tax reform proposal for the next fiscal year starting in April, including an increase of the tax-free income threshold from ¥1.03 million ($6,610) to ¥1.23 million, after signing an agreement to “continue talks in good faith” with its partial alliance partner, the Democratic Party for the People, following a rocky week of negotiations.
Ahead of the Liberal Democratic Party and Komeito bloc’s approval, the three parties’ secretaries-general signed a confirmation letter stating that discussions will resume for implementing their Dec. 11 agreement with the “aim” to raise the threshold to ¥1.78 million in the next fiscal year.
“The proposal has been finalized with the amount of ¥1.23 million, causing the DPP tax chief to leave in the middle of our meeting (on Tuesday), which leaves us unable to implement the three-party agreement. To prevent that from happening, we confirmed that our talks will resume,” LDP Secretary-General Hiroshi Moriyama told reporters Friday morning.
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