While proposing a contentious temporary tax cut as part of an inflation-relief package, Prime Minister Fumio Kishida seems eager to distance himself from an advisory panel's medium-term reform suggestion that could mean higher taxes for salaried workers.
In June, the government's Tax Commission, an advisory panel to the prime minister, put forward a proposal in its first medium-term report in four years to recommend that the government consider a tax system that would keep pace with diversifying work styles.
Kishida has sought to downplay the proposal, but concerns over tax hikes have not been dispelled. It may be one of the focal points of future discussions on tax system reform.