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Bloomberg
Japan is set to increase the annual limit on tax-free investment accounts aimed at the middle classes and raise taxes on ultra-wealthy individuals, as PM Fumio Kishida pursues his agenda of fairer distribution of the fruits of growth.
The revamped NISA tax-exempt system will expand the amount that people may invest over a lifetime to ¥18 million ($131,000), according to documents seen by Bloomberg.
It would allow investments of up to ¥1.2 million a year on
installment accounts, triple
the previous limit. The maximum amount on other accounts would be doubled to ¥2.4 million, in changes that take effect in January 2024.
Use of both types of NISA account at once will be permitted, and existing time limits on tax exemptions will be abolished, according to the documents.
Kishida came to office just over a year ago pledging a new form of capitalism that would spread the benefits of growth more fairly. He’s also pledged to double people’s incomes from financial assets, in an aging country where many tend to opt for savings over riskier investments.