Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Japan proposes expanding tax-free investment scheme for savers

Economy Nov 25, 2022 06:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© 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
 

Related Articles

Top 5 things to watch in markets in the week ahead
Top 5 things to watch in markets in the week ahead By Investing.com - Nov 27, 2022 3

By Noreen Burke Investing.com -- Friday’s U.S. jobs report for November will be the main highlight of the coming week as investors remain hopeful that the Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email