The governing coalition on Friday proposed that the minimum annual taxable income be raised from the current ┬е1.03 million to ┬е1.23 million starting next year.
The tax chiefs of the ruling Liberal Democratic Party and its coalition partner, Komeito, made the proposal at a meeting with their counterpart from the opposition Democratic Party for the People.
The three tax chiefs plan to meet again as early as Tuesday after the DPP, which seeks to raise the threshold to ┬е1.78 million, opposed the proposal.
The secretaries-general of the three parties on Wednesday agreed to aim to raise the threshold to ┬е1.78 million.
An increase in the threshold to ┬е1.78 million is expected to lead to a decline of ┬е7 trillion to ┬е8 trillion in national and local tax revenue combined, causing concern for local government officials.
The ruling camp aims to adopt its annual tax reform package as early as Dec. 20.
