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Toward Growth, Distribution, and a Sustainable Society

2025/5/22

Special News

Japan is facing complex and serious challenges such as population decline, a low birthrate and an aging population, labor shortages, fluctuating energy prices, geopolitical risks, and climate change. These structural constraints not only hinder economic growth but also greatly impact the sustainability of the tax revenue structure and fiscal management.

In light of these realities, the 2025 budget compilation and tax reforms are positioned not merely as short-term economic stimulus measures, but as a “turning point in the system” with an eye toward the future of Japanese society.

The government aims to realize a “growth-oriented economy driven by wage increases and investment,” focusing on both economic revitalization and stability in people’s lives. Strategic investments in GX (Green Transformation), DX (Digital Transformation), semiconductor and AI industries are being ramped up, while support for households to cope with rising prices is also being strengthened. Measures to correct tax revenue disparities between urban and rural areas and the rollout of Regional Revitalization 2.0, are also drawing attention.

At the same time, issues such as the so-called “De Facto Single Tax,” which raises concerns about tax fairness, and the need to reconstruct the tax system to accommodate diverse lifestyles, are key future challenges.

In terms of housing-related tax relief, tax deductions and reduction measures for seismic retrofitting, energy saving, and barrier-free renovations are being significantly expanded. These are expected to have ripple effects across many areas, including improved quality of life, environmental measures, and disaster prevention.

Tax systems are not merely “mechanisms of money.” They reflect how society should be and what kind of future the nation envisions—a form of “social design.” The 2025 tax system and budget represent a new challenge that simultaneously aims to realize a virtuous cycle of growth and distribution, inclusivity of diverse values, and responsibility to future generations.

🔗In the main blog, we delve into the full picture of the 2025 policies and tax reforms in more detail and specificity.

  • “How does this affect our daily lives?”
  • “So, what’s really going to change?”

We unravel these questions in an easy-to-understand way. Please click the link below to read.

👉 [Click here for the main blog]
https://member.glocaly.tokyo/en/client/blog-detail/220

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