Prime Minister Fumio Kishida spoke about a plan Thursday to make NISA — Japan's tax-free savings account program — permanent to draw more individual assets into markets.
It is "essential" to establish a permanent tax exemption system for proceeds from investment, Kishida said in a speech delivered at the New York Stock Exchange to encourage more foreign investment in Japan.
Kishida said such tax incentives are necessary because Japan has ¥2 trillion ($14 billion) in personal financial assets but "only around 10%" is invested in stocks.
Since he took office last October, Kishida has proposed a "new form of capitalism" that emphasizes wealth redistribution.
Kishida said his new capitalism policies should be as powerful as two-way Japanese baseball star Shohei Ohtani, as it could help the Japanese economy achieve "growth and sustainability."
Under the Nippon Individual Savings Account (NISA) program, holders of designated accounts at financial institutions are exempted from taxes levied on proceeds from investments until 2042.
Kishida proposed eliminating the deadline in the speech, but the details will be left for further deliberations by the Finance Ministry and a tax system panel of his ruling Liberal Democratic Party.
Kishida also said Japan will expand tax incentives to improve the environment for startup businesses.