The two Japanese house have received a petition from Takesi Fujimaki about a huge cut in cryptocurrency tax system. If approved, the proposal will bring about a huge reform to the existing tax system and maintain a cut of about 30% on the existing tax system.
Takesi Fujimaki, a former advisor to George Soros and an ex-JPMorgan Chase employee, and is currently a Japan Innovation Party member of the House of Councilors, the National Diet of Japan’s upper house is a hardcore fan and supporter of cryptocurrency. He has been known for proposing crypto reform bills and speaking up against any law that has a phobia for cryptocurrency.
On his website, Fujimaki stated the reason for his proposal and explained how the current tax system for the crypto world is bias, he also want crypt to maintain the same tax system with Stocks, mutual funds and FX.
The main motive for this drive as stated on his website is:
・ We will transform the virtual currency tax system into a form that should be in order to spread the virtual currency widely in society and to promote the development of blockchain technology.
・ Tax system should not destroy the future of virtual currency and blockchain.
“From a total tax of 55% to a separate tax of 20%! :- The tax system for trading gains on virtual currency is currently a comprehensive tax with a maximum tax rate of 55%. If stable income is expected, such as salary income, comprehensive taxation application is reasonable. But the trading gains of virtual currency are not. As with stocks, mutual funds and FX, earnings are volatile and there may be years of losses.
From that point of view, as with stocks, mutual funds and FX, separate taxation at a tax rate of 20% should be applied to trading gains on virtual currencies.” he stated on his website.
Other points mentioned include:
- Allow loss carry forward deduction!
- No tax on trading between virtual currencies!
- Tax-free small payments!
He made a twitter post showing the hardcopy of his proposal