TOKYO, Oct. 17 (Xinhua) -- Japan's government is considering further raising the corporate tax to fund defense spending expected to keep expanding, Kyodo News reported on Oct. 17, a plan that could provoke opposition from the business community.
The government is pushing ahead with revisions to its three national security documents. A new National Defense Program Guidelines covering fiscal 2027 to 2031 calls for large purchases of drones and expanded stockpiles of ammunition and missiles in preparation for prolonged conflict.
Citing senior government officials, the report said that if estimated according to the Defense Ministry's requirements, Japan's total defense spending over the next five years "could balloon to 70 trillion to 80 trillion yen" (about 158 yen to the dollar).
Multiple sources said the government is considering raising the corporate tax to secure a stable revenue source, and also plans to adjust fiscal expenditure, though both approaches carry uncertainty.
Under the current security documents, Japan's defense spending for fiscal 2023 to 2027 totals about 43 trillion yen. The government originally planned to raise defense spending to 2 percent of GDP by fiscal 2027, but Prime Minister Sanae Takaichi accelerated the increase and reached the target in fiscal 2025.
Japanese media reported earlier that the Liberal Democratic Party has suggested further raising defense spending when the security documents are revised within the year, a move that has triggered widespread concern.
