Japan proposes expanding tax-free investment scheme for savers

Japan proposes expanding tax-free investment scheme for savers By Reuters

Breaking News

‘;

Economy 5 minutes ago (Nov 25, 2022 06:12AM ET)

(C) Reuters. FILE PHOTO: A woman in a traditional costume makes her way at a shopping district in Tokyo, Japan November 15, 2022. REUTERS/Kim Kyung-Hoon

By Tetsushi Kajimoto

TOKYO (Reuters) – Japanese government on Friday called for doubling a tax-free stock investment programme for households, to encourage savers to put more money in riskier assets rather than hoarding it only in cash and savings accounts.

The proposed changes to the Nippon Individual Saving Account (NISA) programme aim to double the number of accounts to 34 million and the amount of investment to 56 trillion yen ($404 billion) over the next five years.

Under the current scheme, holders can only invest up to 1.2 million yen ($8,600) annually in stocks and investment trusts. The accounts offer a five-year tax exemption on returns.

The programme is part of Prime Minister Fumio Kishida’s “new capitalism” scheme to boost average household wealth and asset holdings, which has shifted emphasis to investment after an early proposal to review the country’s capital gains taxes failed to gain traction.

Kishida has also taken his Japan investment campaign abroad, telling bankers and investors in the City of London in May this year that “Japan is a buy.”

Japanese households hold more than half of their 2,000 trillion yen in financial assets as cash and in savings accounts.

But while those assets have risen only 40% over the last 20 years, in the United States and Britain, where households invest more of their assets in stocks and investment trusts, financial assets have risen by 3.4 times and 2.3 times, respectively, from 20 years ago.

The government presented the proposals at a panel meeting on Friday and aims to reflect them in Japan’s annual tax reform plan to be compiled at the end of this year.

The proposals include making NISA, launched in 2014, a permanent programme while raising the upper limit for investment.

The task force on Friday also urged reforms for individual defined contribution pension plans – known as iDeCo – including raising the age limit for enrolling in the scheme.

($1 = 139.3900 yen)

Japan proposes expanding tax-free investment scheme for savers

Marketmind: Gloomy enough?By Reuters – Nov 25, 2022

A look at the day ahead in U.S. and global markets from Mike Dolan. As Americans digest turkey feasts and head to the shops, they may also give thanks that the economy looks…

China loosens monetary policy again with 25 bp reserve ratio cutBy Investing.com – Nov 25, 2022

By Geoffrey Smith
Investing.com — China’s central bank loosened monetary policy again on Friday, the latest in a string of official attempts to shore up a financial system…

Shares set for weekly gain, Treasury yields fall as investor optimism continuesBy Reuters – Nov 25, 2022

By Kevin Buckland TOKYO (Reuters) – European stocks were on track for a sixth successive week of gains on Friday and government bond yields globally traded near multi-week lows as…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

About the author

Related