Kyodo reported on 17 that the Japanese government is considering raising corporate taxes to help finance an expected increase in defense spending. Tokyo is revising its three security documents; the new defense buildup plan for fiscal 2027–31 envisages large-scale purchases of drones and increased ammunition and missile stockpiles to prepare for prolonged operations. A senior government official told Kyodo that, on the defense ministry’s estimates, spending over the next five years could swell t

2026-10-17

Kyodo reported on 17 that the Japanese government is considering raising corporate taxes to help finance an expected increase in defense spending. Tokyo is revising its three security documents; the new defense buildup plan for fiscal 2027–31 envisages large-scale purchases of drones and increased ammunition and missile stockpiles to prepare for prolonged operations. A senior government official told Kyodo that, on the defense ministry’s estimates, spending over the next five years could swell to ¥70–80 trillion (about $443–506 billion at ¥158/$1). The proposal is likely to draw opposition from the business community.

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