March 10, 2026

Akahata editorial (excerpts)

The Takaichi government will implement tax increases totaling more than one trillion yen starting in April, aimed at financing military expansion. This is the first time since the end of WWII that tax hikes have been publicly stated to serve this purpose. However, Prime Minister Takaichi did not even mention anything about such a plan during last month’s general election campaign.

In April, a “special defense corporate tax” will be introduced and the tobacco tax will increase. The former tax is expected to generate around 860 billion yen, while the latter measure is projected to yield approximately 210 billion yen. Furthermore, the government intends to introduce a “special defense income tax” in January 2027, which will impose a levy of 1% on all taxpayers in Japan. A bill for this tax is already under discussion in the current Diet session. The government anticipates securing around 250 billion yen in revenue from the new income tax.

The government has set a target of 43 trillion yen for military spending over a 5-year period starting in fiscal 2023, aiming to reach 2% of GDP in fiscal 2028.

In order to secure this substantial military budget, the government has prioritized defense spending over social security and education, cutting back on budgets in these areas. It has already resorted to methods such as diverting surplus funds, creating a “defense strengthening fund”, and converting construction bonds into military loans.

Regarding the “defense strengthening fund”, the government expects to secure around 4.6 trillion yen by requiring the National Hospital Organization and the Japan Community Healthcare Organization to return their reserve funds to the national treasury in order to transfer them to this defense strengthening fund.

Financing military spending through bond issuance was long considered “taboo” due to the country’s remorse over its past war of aggression. However, part of construction bonds has been diverted for military use since fiscal 2023, exceeding 2.3 trillion yen in the last three years. For fiscal 2026, around 600 billion yen is scheduled to be issued for military purposes.

Furthermore, the government is seeking to dip into the Special Income Tax for Reconstruction which is earmarked for the recovery from the Great East Japan Disaster of March 2011. It plans to divert half of the revenues from this tax to military spending.

Once initiated, tax measures to secure financial resources for military spending could expand further. It is necessary for people to set aside their political differences now in order to stop the planned tax hikes for the purpose of preparing for war.

Past related articles:
> JCP Miyamoto: Kishida gov’t should not use public hospitals’ reserve funds to finance huge arms buildup [February 2, 2023]
> Bill to set up fund for 43-trillion-yen military buildup enacted [June 16 & 17, 2023]