Japan’s Democratic Leader Promises to Cut Crypto Tax to 20%

On October 20, Yuichiro Tamaki, leader of the Democratic Party of Japan, proposed that his party will slash the crypto tax plan to 20%, if elected.

In a translated X post, Tamaki said, “The Democratic Party for the People is proposing clear tax cuts and regulatory reforms regarding cryptocurrencies. If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People. There will be no tax when exchanging crypto assets with other crypto assets. I would appreciate it if you could spread the word about these promises made by the Democratic Party for the People.”

However, his promise seems to be tough to execute, especially as the Democratic Party currently holds only 7 of the 465 seats in the House of Representatives of Japan, also referred to as the lower House of Representatives of the National Diet of Japan. Tamaki also went on to say that no tax event will be triggered when exchanging one crypto asset for another.

Japan’s election is scheduled for October 27. The DPP, which many surveys have predicted to have a slim chance of winning, has extensively pitched voters an increasing take-home pay to beat inflation. 

Earlier this year, in August, Japan’s Financial Services Agency had released plans to lower taxes on crypto assets.

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