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Story summary
- Prime Minister Sanae Takaichi's government plans to raise the tax-free threshold to 1.78 million yen and hike income tax in January 2027.
- The plan, agreed with the Democratic Party for the People, would cut income tax for 80% of taxpayers by 30,000–60,000 yen.
- Additional revenue would fund defense spending to 2% of GDP by fiscal 2027.
- Parliamentary debate is expected early next year.
