Controversy Erupts: Japan’s Flat-rate Tax Reduction vs. Mandatory Salary Disclosure

The National Tax Agency has published a guide titled “Q&A on Flat-rate Tax Reduction for the Year 2024,” which includes the following statement,

“In the payroll statement, please include the amount of monthly reduction deducted, such as ‘Flat-rate Tax Reduction Amount (Income Tax) ¥×××,’ ‘Flat-rate Tax Reduction ¥×××,’ etc., as appropriate.”

“Even if such documents are casually announced on the National Tax Agency’s website in PDF format, few busy executives would notice. Even among us in the media, we didn’t know until some newspapers reported it. Since opinion polls from various broadcasters were likely announced about 20 days ago, it’s highly probable that government officials intentionally leaked information to the media afterward.

It was foreseeable that there would be significant backlash from the public, especially from executives, due to the complexity of the procedure. If announced before the opinion polls, it could lead to a situation where the voices of bullying of employers become louder, potentially causing a further decline in the government’s approval ratings.” (TV station personnel)

Naturally, many employed company workers would be pleased if taxes were not deducted from their payslips. Balancing the scales between employers and employees, the decision was made to impose burdens on employers.

However, on social media,

“What are they even complaining about for just a measly ¥40,000 tax reduction? How much do they think prices have risen?”

“They probably just switched from benefits to tax reductions because they were upset about being called ‘the tax-increasing spectacles’!”

There are many harsh opinions directed towards Prime Minister Kishida.

Perhaps they wanted to emphasize “Kishida the Tax Reducer,” but it seems quite challenging to grasp the sentiment of the people.